Florida

I recently visited your Web Site and enjoyed very much the information available to consumers on the Credit scoring Issue and Insurance. I agree that the industry is going too far and that our rights as individuals are being trampled on. Credit Scoring is not only just another way for the Industry to avoid claims but also increase premiums while doing so. It is basically legalized extortion.

A question I have is this: I understand that Inquiries have a negative impact on an individuals credit score? If this is the case and I decide to shop for insurance I would complete an application with several companies to compare costs. Wouldn't each one of these appear as "Inquires" on my credit report? Do I now suffer because I shop?

No question it is time for the consumer to get involved. I might point out that I have spent 30 + years in the insurance industry and this type of analysis and loss avoidance techniques are not what I learned growing up in the business as fair practices. I plan to involve myself as much as possible in this issue.

I am writing more in response to our home owner's policy.  This year we have seen insurance credit scoring applied to both our home owner's and auto policy.  My wife had  her auto policy with Horace Mann Insurance Company for 15 years.  I have been with them for 8 years, from the time we got married. We currently have our auto, home, and life insurance policies with this company.

Our auto policies, maybe went up $100 overall.  We considered this a fair hit, since we knew rates in Florida we increasing.  However, the real shocker was when received the renewal notice for the homeowner's policy.
The difference for the renewal was a staggering 75% increase.

When we contacted the agent about the reason for the increase, here is what we were told.  1.) Our premiums across board were increased 8% to keep up with inflation.  2.) Your policy was increased $80 (10%) for a minor claim that was filed the preceding year. 3.) The rest of the premium change is a direct result of the insurance score.  This accounts for about 60% of the increased premium.  We were essentially told, that if we did not like it, to shop around, but to not cancel our current policy until a new one was in effect.  We were also told to not let any of our coverage lapse for non-payment, as we would not be reinstated due to our credit score - and that we would probably find it difficult to find coverage elsewhere.

Indiana

I had received a letter in the mail that my Insurance company was canceling my homeowners policy effective may 17th. upon investigation, I contacted my local agent and they had told me, I was a victim of credit scoring. my agent  had asked me if, I had any recent losses or claims. I  stated no, but my wife was currently going through a bankruptcy and my ex-wife quit making payments on a vehicle that she was court ordered for financial responsibility on said auto. but it still shows up on my credit report due to my name being first on the loan. my agent did make the statement that the company was probably cutting their own throat on my premium of 240 a year, my home was built in 2001 you would think that in its self was good enough to reduce the risk in it self considering, new building construction code and requirements. how does this credit scoring affect my ability to pay my premiums or the possibility for future loss based on some credit score. as of now they have not messed with my automotive policy are they going to cancel this to when due in Feb, 2004.

Kentucky  

My insurance rates have gone up considerably during these past couple years because of my credit score.  I was shocked after learning that the insurance companies now use credit scores to determine who pays more.  Well, there is no way around the fact that this is discriminatory practice.

 My wife and I both have excellent driving records and are moral upstanding citizens.  In fact, we have never filed bankruptcy, had a repossession, or have had any liens against us.  However, two years ago my company suddenly announced a plant closing and didn�t bother paying their employees their last week�s wages.  It was during this time that I suffered financial hardship.

 My wife was off from teaching as she had just given birth to our daughter.  She had several complications and was forced to take off work.  After a few weeks her disability stopped and all we had was just my unemployment.  I was out of work for nearly a year and so, yes, of course, I got behind on my payments.

 The saddening part is that I have tried my best to catch up and not lose anything, but these insurance companies are making it hard on a person who has been down on their luck.  How can I be expected to catch up when its people like them that keeps kicking me when I�m down?  My premiums are through the roof and I hear there is no end in site.

 I honestly believe that this is just another hurdle that the poor or oppressed will have to face.  It�s just a shame that our government doesn�t ever seem to notice that it�s everyday people like me that just can�t get a fair shake in this country.  I feel like I�m at the mercy of this huge monster who obviously has the power to do just about anything they feel will line their pockets.   So sad��

Louisiana

I am a product of insurance credit scoring discrimination!!! I am vvvverrrrry angry about this invasion of privacy. Your article was very informative stating the insurance companies reasoning to this new form of insurance approval. However, regardless of their surveys, as a consumer, I still do not agree that they have the right to play Sophie's Choice. Did they do a survey on the credit rating of all consumers who did not file claims. I would not be surprised to see just as many bad credit ratings as those who did file.

Isn't this the reason to have an insurance company anyway. If we allow this to happen (especially, because it is the law to have insurance coverage), will they start doing credit ratings to buy groceries, clothes, or utilities, etc.

I don't understand that if we are not borrowing the money, why do they have to do a credit check? It is simple, if you don't pay then they drop you, period!. By allowing this to go on, everything that is to be purchased, regardless if you pay cash for it, is at risk to be refused to the consumer based on discrimination.

HOW CAN I GET INVOLVED TO WHERE IT WILL MAKE A DIFFERENCE! I have already contacted my area councilor and he did not know anything about this. I need to do something besides write letters. Please contact me with suggestions. I am surprised that there is no law suit against the insurance companies been filed based on discrimination and invasion of privacy. Has there?

I sincerely believe that I am a victim of Insurance credit scoring.  Yes, my credit is not that great and yes I have filed injury claims on two occasions but,  I was injured.  Maybe if I had to do it again, I would have paid for
my own injuries because, I am paying for it now.  My reason for filing a claim was not based on the need for money; it was based on the fact that I was injured in an accident.  I  have had to change insurance companies
frequently because I would be offered a lower premium in the beginning then upon renewal, it would go up (lower meaning lower than the previous company).  I have two vehicles, a son 20yrs old (no traffic violations) and a 21 yrs old daughter ( 1 ticket).  I was involved in an accident in October of 1999 of which I was at fault and in December 1999 and 18 wheeler hit me. I was injured but not life threatening.  Premiums I have been quoted are as high as $8000.00.  I had to separate the vehicles and call different insurances to eventually get premiums for $4000.00. This is ridiculous!! I believe I am sincerely paying the price for filing those claims. 
I am anxiously awaiting December 2002-God willing, and no tickets to see what premiums I would be quoted.

First off, we didn't even notice the increase until we went to refinance our mortgage. The gentleman who did our re-fi mentioned to me that he felt my insurance premium was high for only having 1 rider.  So that is what made us look into this further.  When I spoke to the office girl, she mentioned that my premium went from $433 for '01-'02 to $791 in '02-'03! Wow!! Why is that?? I asked about the burglary and she assured me that it didn't go up because of that claim. When I spoke to my agent he said that the rate increase was due to the credit scoring and I should have noticed the increase in my premium notice.  I can assure anyone asking that we did not receive any such notice. My home owners policy went from $433/yr to $791/yr - a slight 82.5% increase!!!

My agent said that since my name was listed first that's the name they ran the credit scoring on. When I called they reran mine --- and said that it had improved and my premium could decrease by as much as $300, but said that I couldn't do anything about that with the current company until my policy is up for renewal in December '03. But during the course of the conversation he also mentioned that the credit score could change from day to day --- he said that he could run someone's score everyday in a week and come up with 5 different scores.  I guess this is what makes this so confusing and difficult to understand how this is done.  

Maryland

Consider Maryland. Legislature outlawed use of credit scoring for determining premiums.  I'm in the "700" club on my score, no claims, good record and was insuring 3 vehicles, 3 drivers (one a teenage male) for $1750/yr, state minimums.  Because they can no longer use my credit score I am charged at stratified rates and am facing a 67% increase in renewal premium ($2924/yr!!!).  Same scenario on Homeowners.  Insurance Commissioner will also here from me asking to keep credit scores.  Put me on the side to keep using credit scoring.  Will I see this post on your web page?

Editors' note: Yes, this will be printed. However be aware that the Maryland Insurance Administration disputes the claim that credit is a factor. It appears this is a "scare tactic" by the insurers to affect the outcome of legislation in the next legislative session. Below is an email from the MIA.

     "I am writing in response to your e-mail regarding the impact of Maryland's credit scoring law on the insurance market in Maryland. Specifically, since the passage of the credit scoring law in 2002, has Maryland experienced: (1) any insurers withdrawing from Maryland; or (2) rate increases in the market.
 
     Since 2001, many factors have contributed to premium increases for most lines of insurance.  In short, we are in what is known as a "hard market." This means that if insurance is available, the rates are increasing, and at a steep pace. Many reasons are to blame for this, such as 9/11, the slumping stock market, and the increase in both the frequency and severity of claims. When the stock market is rising, investment income is used to offset underwriting losses, which is the difference between premiums collected and claims paid out to keep rates affordable.  However, when the market is down, and there is no income to offset the losses, insurers either raise rates, stop accepting new business or both. Also, claims experience in Maryland has been pretty high since 1999- one hurricane, two tornadoes and many storms in between.  As a result, Maryland, as well as most states across the country, is experiencing an increase in insurance rates.

         In addition, some of the largest rate increases experienced by Maryland insureds are from insurers who do not use credit history as a factor for determining an insured's rate.  For example, State Farm Insurance has never used credit history as a factor for determining rates for homeowner's coverage yet State Farm, overall, has the largest rate increases for homeowner's coverage in Maryland.

      With respect to participation in the Maryland market by insurers, any one of, or a combination thereof, of the market conditions outlined in the above paragraph may influence an insurer's decision whether to remain in a particular market.  While some insurers have withdrawn from certain lines of insurance, such as homeowners and motor vehicle, Maryland has not experienced a large number of insurers withdrawing from the market within the last year.  In fact, in many respects the Maryland insurance market remains one of the more stable markets in the country.  The Maryland insurance market has not yet experienced the availability or affordability crisis that has occurred in other states."      
Kathleen Loughran - kloughran@mdinsurance.state.md.us

Michigan

The insurance company AIG raised my auto rates because I switched credit cards (to one that contributes money to my kids' elementary school) and don't carry enough debt.  I'm not certain of this, but I got an insurance co. flak-jacket to admit as much, given my perfect driving and claims record, and my very good credit record, that this is the only explanation. I reviewed my credit reports as recently as September, 2002.  It looked fine to me.  I told the insurance company representative what my family made last year, what I grossed in the first weeks of this year, trying to impress him that I was a solid citizen.  I said, what about those folks who lived through the Depression and have a horror of debt?  They're rates go up? Just plain poor people who wouldn't think of filing a fraudulent claim -- they pay MORE for insurance?  The prostitute just kept repeating the company line.  I immediately cut collision and comprehensive coverage (my cars are seven and eight years old, anyway), made an Insurance Bureau complaint (tho' he was probably right, that it's perfectly legal in MI after all of ex-Governor John Engler's coddling of the industry), and started shopping. I found a better rate from AAA (they carry my homeowner's) and slightly better coverage that I can use (glass and such) but the agent admitted that AAA used "credit score-based underwriting", too.

I sure don't see the causal connection.

Mississippi

I suppose my story will differ slightly from many others, in fact, I believe my story shows a much nastier picture on how credit scoring hurts young families.

My husband and I have a unique opportunity to become homeowners.  To fully understand this opportunity it is necessary to know that my husband went through a very bad divorce.  And as seems to be common, was left "holding the bag," or in his case a box of bills his ex said previously had been paid, but were not.  So needless to say, my husband has bad credit.  The house we are trying to buy is owned by a family member of a very good friend of ours.  Based on that friend recommending us, the seller determined (even with 2 other more qualified buyers) that she wanted US to have the house. She said she knew all along we belonged in that house.  She knows fully about our credit problem and does not see that as a factor in us affording
to pay a mortgage.

Here is where my story gets grim.  Since the day we were told the house was ours we have been turned down by FIVE insurance companies.  Not simply DENIED lower premiums but flat out turned down based on credit.  I can't believe that we are allowing COMPUTERS to decide that ME and MY FAMILY are
not DESERVING of owning a home.  Its wrong I don't care how anybody looks at it and justifies it.

We have our auto insurance through Geico and have had the policy in effect for over one year now.  When I called Geico they gave me a policy number and took my payment right there over the phone.  The same day they sent me over the temporary binder, however, because it takes at 30 to 60 days to actually
write the policy, we have had to put off closing on the house until we are SURE the policy will not be denied for any reason.  The owner is working WONDERS with us as she has given us the ok to just pay her rent, the SAME amount as what our mortgage payment would be, until we find out for sure on the insurance.  If we CAN'T get the insurance we would have to just rent from her at a much higher (and possibly not affordable) rate.

This is the worst sort of crime in my book because its NOT ILLEGAL.

I would love to hear from you if you happen to have any contacts or a list of insurance companies that DON'T use credit scoring in their policy underwriting process.  Thank you for hearing my story and I hope others
benefit from it and that we are able to get some sort of resolution to this broken down process.

Montana

I am a non-traditional college student here in Great Falls. I am appalled at the insurance companies here in Montana. This credit scoring is a form of financial discrimination. Recently, in trying to obtain car insurance for my 1980 Datsun, I was quoted some ridiculous rates. I contacted five different insurance companies. Some popular companies, like Progressive, down to the tiny family owned ones here in Great Falls. The rate quotes varied from the highest at $ 536.00 for basic liability with a company using credit scoring to $296.00 with a company in California that does not use credit scoring for a 6-month policy. Some of the companies refused to write a policy for me. This leads to another problem for many people. If you have not had insurance in the last 30 days, most companies refuse to write a policy for you at all. Many people I have talked to here in Great Falls think that it is NOT fair. With this time limit, shopping around for the most reasonable rates is not an option. Many people, me included feel trapped, so to speak, into having to pay more for less! As you can see, this is outrageous! I am 36 years old and have a clean driving record. I have no debts at this time. This credit scoring depends on credit reports, 70% inaccurate according to research I have done. I am a divorced woman. When my divorce finalized, it was court ordered that my ex husband pay 100% of all marital debt. I do not see why I am penalized for his mistakes. Many other people here in Montana are going through the same thing, wages are low, debts can increase. How is anyone supposed to comply with a mandatory insurance law, when the insurance companies refuse to write policies, based on one�s credit? Many states, including Alabama, Alaska, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, S. Carolina, S. Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington and Wisconsin, have bills that either have passed ,or are under consideration at this time. Furthermore, other companies are using credit scoring for other reasons that are unfair as well. I cannot see how typing in a mathematical equation determines a person�s risk potential, especially with the inaccuracy of information in these credit reports. If you have ever tried to have an item removed from your credit, I am confident you will see how long this process takes. Many companies are not even required to report positive accounts to credit bureaus. I am including the letter I wrote to the editor of the Great Falls Tribune, in which I received numerous letters from concerned people around the state. I also hope that serious consideration to completely ban this practice of credit scoring in Montana is achieved. My car insurance rates should be based upon my driving record, and my driving ability, not my ex-husband�s mistakes.

Dear Editor:

I am appalled at the last several articles in the tribune regarding the credit scoring issue. I have written several letters, to several legislative members, as well as a letter published by this newspaper last fall stating exactly what happens when insurance industries use a person�s credit score, to underwrite a policy. I am tired of hearing about this bill or that bill, amendments made to them etc. etc. Of course, the insurance industries are "fighting". They know they are making money off of false information! Fact! Credit scoring is a source of financial discrimination. Fact! Credit has nothing to do with a person�s driving ability! Fact! Credit Information insurance industries use, was found to be 70% inaccurate. Fact! The use of the "credit scoring model" can mean a difference of 100�s of dollars consumers would have to pay for basic liability car insurance!.

SB 349" requires insurers to notify customers on how they use their "credit-scoring models" with the state insurance commissioner." Big deal!

How about doing a survey of how the public is affected by "credit-scoring models". If its ok to run a survey for employment purposes, what about another "tool" for the "toolbox"; a survey on the effects of credit scoring to look closely how this effects Montanans, who already are trying to raise families on poor wages. This matter needs to be researched more. There are so many other reasons, which people should not have to disclose about their recent divorce, or breakup, and/or lack of credit to an insurance agent, just to obtain the legal requirements to drive a car in the state of Montana. What happened to a driving record? Shouldn�t that be the ONLY tool?

I think the legislature needs to research the reasons why 32 states have either restricted or banned completely the use of credit-scoring,

It amazes me how its ok to give criminals a "second-chance" but be a responsible, hard-working, honest person trying to buy car insurance legally required by law, and they are discriminated against for reasons beyond their control. So much for freedom of choice. What is next for the insurance industry to use? My education level? So much for equality. I encourage all people to take the time to call around to the different insurance agencies, both locally owned and corporately owned, in and out of state that use and do not use credit scoring and compare your rates. I think the legislature needs to let the public decide.

Ohio

We are from Ohio and just met with our insurance agent today. His suggestion was moving us from one company to another. Evidently the new company, Cinncinnati Insurance, tried credit scoring and found it didn't work for them. They quoted us nearly $1000 less...

The insurance agents aren't in favor of this practice because they are on the front lines and have to deal directly with irrate customers. Our agent admitted that he thinks its wrong and shouldn't be used--and he has told (the company) that "credit scored" us that they stand tol lose a lot of customers.

I plan to inform everyone I can about this practice. My own father in law wasn't aware of it, and he assured us that his insurance company didn't use this method--then he looked at his statement and found out he was IN FACT credit scored! Hopefully, either through customer advocacy or the loss of customers, this practice will end.

I'm in Ohio - My insurance agent told me that I'm paying higher insurance on my house because its a double-wide buts its not its a state-code built modular - built as well as a stick built home and I have a deed not a title.  Then when I told her I wanted cheaper insurance - she said my rates would be higher if I switch due to my credit rating.  She also said that my car insurance is higher because of my credit rating.  This is so totally unfair.  I have a good driving record.  Thanks for you help I do appreciate it.  This just makes me want to scream injustice - unfair to poor people.

I understand the need for insurance but when it comes to checking your credit in order to get a insurance plan that is reasonably cheap.  In the past I have been turned away from insurance company's and when I found one it was very expensive.  Insurance is the law in this state so why don't they make it affordable? 

I have recently purchased a home and have been shopping for home owners insurance and have felt like a victim of this scoring system even from an agent who is a "close friend of the family".  I received the worst rating yet when I insured my automobile I received discount for no tickets or accidents in the last 5 years or more. I have purchased a new car at great rates based on credit as well as a home but all of a sudden I am a high risk score type person. I feel the anguish.  My question is this. I read the section  "who is on your side". The company that I received a quote from Allstate who claims to be one of the "people on our side" were the same people who rated me a 5 and have jacked my premium to double, what many other people I have talked to, pay.  Is there an A tier company who give me a strait answer as to the criteria I am being judged on and is there a company who does not use the same underwriting division?  Who is on my side? I need insurance and I need it now but who can I trust to at least rate on an accurate basis? Some thoughts and some questions.

Oregon

I live in Oregon.  I purchased a home here about a year and a half ago.  I moved into it originally under a lease purchase option.  Well, I purchased it, and the landlord made the purchase date the date I moved in, and counted my rent as payments (he did this to avoid being taxed as a "renter", since he was the previous dweller)

Anyhow, I was under the impression that we had changed our renter's insurance to homeowners until I called recently to check on it.  Turns out, I was still on a renter's insurance policy.  I decided that I wanted to shop around before starting a new policy.  I was very upset to find that no one will write me a policy because I have a series of hits on my policy for medical bills.  My daughter was born with Cancer this year, and has ended up with severe Scoliosis due to the removal of the tumor.  Anyhow, we have not done well with the traveling 300 miles one way to the specialists regularly and also paying the 26 individual medical billers (everything from the surgeon to the pediatrician to the imagining expert)  It was just overwhelming.   Well, we have decided to go to CCCS and they have been handling it for us quite well. 

Just a couple of months ago (same credit history) I got a loan for a car (which was needed to travel to the specialists every few weeks.)

I just got my renewal from Travelers Ins.  And it went up $100.00.  I have been with Travelers for 2 yrs (and by the way my payments come directly out of my paycheck every week).  I am 31years old my last ticket was when I was 19, 11 years ago.  No accidents, no suspensions, no minor children of driving age, nothing.  I am paying $1,908.63 a year.  Almost $200.00 dollars a month is being taken.  And let me add this:  I HAVE NEVER FILED NOT 1 SINGLE CLAIM IN MY SHORT LIFE.  But yet I am considered HIGH RISK.  So I am paying an outrageous premium based on a stereotype, I believe that is called DISCRIMINATION.  I understand why some people don't bother with insurance, you can't afford it, but yet if you don't have it you are breaking the law.  So I would like to know why I am being penalized for other peoples doings.

And I, like some of the other people affected stated, why is my credit score looked at when I am not borrowing money.  And why can we not get a percentage of the money back if we don't file claims.  I am paying the Insurance company for a service they work for me, not the other way around.  The Insurance companies need to remember this as well as the government, they too work for us.  But who can we go to, honestly.  The government will not a pass a law because I am sure they are benefiting some where for this and the Insurance companies are milking off of it so as I consumer WHAT CAN WE DO????????

Tennessee

My husband and I have never filed a claim and always had good credit until an illness and the death of our two grandsons. Sometime in 2001 we learned of a state tax lien on our credit report. It was originally paid in 1998 but the state of Georgia did not receive the check and never notify us. Nonetheless, we paid again. When they realized their error sent us a refund, but the credit bureaus refuse to remove the item. So when applied with the same insurance company (AARP, Hartford) we will denied based not on filing a claim but on the paid tax lien. We were also cancelled by travelers (Geico) for the same reason. Even though we have never had a ticket or filed a claim. When I called they would not even tell my why. They said because of privacy rights. I have filed a complaint with the Tennessee Insurance Commission and will continue to work toward removing the credit scoring option for insurance purposes. I am still looking for homeowners.

Texas

We are looking for an insurance company in deep South Texas that may be able to help us.  Funny thing is we qualify for a mortgage, but we can't seem to find a good inexpensive insurance for our new home.  

I have a little story of my own to tell.   About two years ago, my husband and I put an offer on our first house.  Our current auto insurance didn't offer homeowners policies in our state (TX), so we decided to go with Allstate on a referral from our Mortgage Broker.  They said that our policy would be $714 for the year with a supporting Auto discount, so we switched our Auto Insurance at the same time at a rate of $603.54   for 6 months.

One year later, our renewal came for our homeowners at a rate of $1280.  I was shocked that it had gone up so much, so I called my agent.  He informed me that everyone's policies had risen a great deal due to many mold claims in our state recently, and that this was normal.  I never received any information as to my credit score.  I noticed when my next auto policy came up for renewal that it was quite high as well, but 6 months earlier it had gone up $100, so I figured the rates were climbing, and I dropped Comp/Collision on both vehicles.  It wasn't until almost a year later, when discussing insurance policies with a close friend (who's home is twice the size of ours, and twice the cost, and who has a brand new $25,000 car and both her cars have comp/collision and her premium was less than mine for both that I began to be suspicious.  I called Allstate, and began to uncover the mysterious insurance credit report scoring.  The agent informed me that I was a 5 on a scale of 1 to 5, with 5 being the worst possible score.  I told him that this could not possibly be correct.  After all, our credit was good enough that we were just able to refinance our home at a lower interest rate, we have never been late on any payments.  Sure, our credit card bills were quite high, and there is an unresolved bill that my husband hasn't paid, but all of our other accounts are current.  So why the terrible score.

After hours on the phone trying to figure out how they had arrived at this magical number, it was clear that nobody could tell me, and that I was never going to find out.  I still believe that there is an error, as my score has always been around 700 give or take 10 points, and my husbands has never been lower than 650.  I know that's not great, but we've never filed bankruptcy, defaulted on a loan, gone to credit counseling, or anything of the sort.

All the insurance companies I have called are charging basically the same rates.  It appears we have no representation from our Texas State Insurance Commissioner.  Insurance has become nothing but a license to steal.  If they had paid their claims there would have been no lawsuit in the first place in this state.  Texas has always had bad weather and is nothing new.

Have been affected!!!!! I had Farmers Insurance for 8 years on my home. My husband's company closed and there were debts to be paid. We chose not to file bankruptcy so we refinanced our home and paid the debts. These were paid 3 months ago and they still haven't been reported as paid to the credit bureaus. (so I'm working on this myself)

Farmers sent us a non-renewal and offered us ins. Thru another company for triple the amount we were paying. I had to get another company, who just notified us of non-renewal due to they were not writing homeowners anymore.

I have been denied homeowners insurance by 3 companies, Texas Select, Prudential, and Nationwide because of "credit". I was also told by a Farmers agent "people with bad credit are more apt to make fraudulent claims" how dare they!!!!!!!!!! I had one claim on homeowners 6 years ago for a total of $2500.00 and have never had a claim on my auto in the last 22 years.

This is outrageous!!!! I need insurance by 05/30/03. I may have to sell because I can't pay these astronomical premiums.

There needs to be some action on this. I know that I'm not the only one in this position. Thousands of Americans are going thru the same thing. Why do these politicians make all these promises and never follow through with them?

I am 72 year old Grandmother. I never thought I would be opposed to credit scoring by the insurance companies but I am.  Here is my story:

I am financially secure. My credit score is 750. I have good assets but not much income anymore. I own 2 homes and commute between them. On February 5 my San Antonio home was burglarized. Allstate Texas Lloyds has treated me like a criminal. I have been insured with Allstate since the mid 1980s with one small
claim in 1995.(they give me a discount for 5 years claim free) They have insisted on credit information, income, assets, bank statements, income tax returns. I went to Austin to file a complaint with the Insurance Commissioners Office Based On the Texas Insurance Consumer Bill Of Rights.

The investigators response "Well Miss, they have a right to that because they need to make sure you can afford what you claimed." The complaint is still pending as is the claim.

Now they want an examination under oath with their attorneys again their right. (In other words an Interrogation in the backroom of the station house with a crooked lawyer) I have photos and or receipts to document what I claimed.

I want everyone to know Insurance Companies in Texas need to be stopped. If this can happen to me it can happen to anyone.

Which is better - to turn down coverage before you have a claim or turn it down afterwards because they feel you committed fraud because you were in financial distress?

Beware everyone get involved stop the Insurance Companies by calling to change laws. No one is immune!!!
Call for change Now!!!

I am glad to see someone as upset about this as I am.  I have had continuous insurance for the last 20 years.  I am 36 years old.  As far as I can remember I have never filed a claim.  I am a rural carrier for the US Postal Service, and I use my personal vehicle on the route. 

Up until now, I have had insurance through my union, which was very affordable.  I got my renewal from them and almost passed out.  I went from paying 757.00 for a 6 month policy to 1457.00 for a 6 month policy.  I called the company numerous times and even got my union rep to call them for me.  They just more or less gave me the run around.  One time they said, more or less, deal with it.  Another time, it was, "maybe there are a lot of comp and collision claims in the area you live in.  Not once did they say it was because my husband and I filed bankruptcy 2 years ago.  I think this practice should be illegal.  Just because someone had some bad luck, you have to pay. 

They are saying it doesn't matter that you have had insurance for 20 years, never been late on a payment, never filed a claim.  Needless to say, I have had to find another insurer, and their rate was not any better.  I did get a quote from another company who gave me a reasonable quote at first.  After they ran my credit report, my premium went up 450.00.  This kind of thing is utterly ridiculous. 

I am in Texas, and I keep hearing reports about how many uninsured drivers there are.  This number will escalate greatly now.  How is the working class supposed to afford this kind of thing?  I think it is a violation of our rights.  I am sorry to keep going on about this, but I am so mad I don't know what to do.  Does nothing count for the consumer anymore?  Thank you for taking my vented anger.  You just seemed that you were on the side of the consumer, and that is very hard to find anymore.

Please let people know to contact Germania Insurance, headquartered in Brenham, TX.  Since credit scoring came into play, my homeowners insurance went from $1000 year in 2001 to quotes of 2100-2860.  They do not use credit scoring and quoted me a price of $1141.  I have solved my problem, but would like to help others who must feel as helpless as I used to.

I have been with My insurance company for 2 years. Our coverage was not renewed, but rather transferred to Colonial County Mutual Insurance Company, "a member of the Nationwide Insurance family of companies."

I did receive an adverse action letter stating that my credit score affected my coverage. I am waiting on my credit report, so I am not sure if the insurance company is listed.  However, the adverse action letter states, "The factor(s) that influenced our decision was information in a report obtained from the consumer reporting agency shown below" I am quite sure it will be listed. This is for auto insurance.

I do not have any tickets or accidents on my driving record.  There was one claim in 2002 by a rental car company for a ding in the windshield.  The claim was withdrawn when the car repair facility that gave me the rental car took responsibility for the repair.

My husband has had a couple of tickets, but they were dismissed with defensive driving class and deferred adjudication, so they should not be on any record that would affect the insurance company's decision to raise our rates.

The only unique thing about my case, is that I find it interesting that my rates would increase, since I am a licensed defensive driving instructor. Therefore, I go through a defensive driving course several times each year.

I just got off the phone with Allstate and my initial quote was $723 for 6 months.  After they ran my
credit, I did not qualify for the premium company so my rate jumped to over $1400 for 6 months.
That is just ridiculous.  She said the only reason I didn't qualify was because of my credit score.

We are senior citizens & cannot afford the auto insurance rates in Texas. We have clean DMV records & should have preferred rates. but the use of scoring by auto insurance companies has put us in risk category rates. Unfair!   Farmers Insurance is overlooking our excellent driving record & focusing more on credit scoring. Unfair!!!

I have absolutely no bad report or bad debt on my credit.  But, Allstate has raised my insurance from $56 per month to $96 per month...with less coverage and a higher deductible....same house for 40 yrs.

The auto insurance on a 1995 model Ford is more today than it was the day I drove it off the dealer's lot.

What we have here is a thief far greater than the Enron scandal.  Why would the State of Texas allow this to happen?