Stupid Insurance Companies.

[whiskeylover]

So I've been shopping around for home insurance, and while talking to the cust rep over the phone, she told me that the rates depend on my credit. I was like "Why? If I'm prepaying why should my credit affect my rates?" And her explanation was...

"For auto insurance, we check your driving record. But there is no such equivalent for home insurance, so we check the credit."

How does that make any sense? Not that I have poor credit, but if, say, I don't pay my premium for a month, they'd deny me coverage if anything happens anyways. How is a person with poor credit of any risk to the insurance companies?

Just more ways to nickle and dime their customers, I think. :roll:

[Sporkman]

How is a person with poor credit of any risk to the insurance companies?

Just more ways to nickle and dime their customers, I think. :roll:

They might have done some studies that show a correlation between bad credit & more insurance payouts.

[KegHead]

Hi!

Companies are starting to check your credit for employment now.

I'ts really sad.

KegHead

[wojox]

They should base it of what your house is worth. There's no sense in paying (x) amount of dollars and a deductible for a house worth (y) amount.

[whiskeylover]

Hi!

Companies are starting to check your credit for employment now.

I'ts really sad.

KegHead


There is a bill in the works that aims to ban this practice.

For these unfortunate people, a job denial based on their poor credit means they're furthre disadvantaged because they can't find a job to pay off their debts.

See this link - http://www.theglobeandmail.com/report-on-business/economy/us-states-may-ban-credit-checks-on-job-applicants/article1485637/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheGlobeAndMail-Business+%28The+Globe+and+Mail+-+Business+News%29&utm_content=Google+International

[whiskeylover]

They should base it of what your house is worth. There's no sense in paying (x) amount of dollars and a deductible for a house worth (y) amount.

They break it down into categories like Liability, Dwelling etc. It makes sense because not everybody might want to cover 100% of their house, or have a huge liability insurance.

And the rates ARE based on what your house is worth.

[blueturtl]

I have never understood the principles on which insurance companies operate. A lot of people here seem to be against businesses in general -- and I usually have trouble understanding them -- but if there ever was a business that was there solely to rip people off it is the insurance business.

You give them your money so in case something happens they compensate your costs... and their profitability depends on not doing this! Not having to pay people their insurance money. They try to weasel out of it as best they can. Sometimes they flat out deny you insurance, other times they just calculate the odds and and add clauses to the contract that make them not liable in the most likely event that people would need the money.

Bump your car? You could cash in your insurance... but then the rates would go up and we don't want that.. so I'll just pay for it from my own pocket and still keep paying for the insurance.

It's mind boggling.

[Post Monkeh]

in car insurance you're not insuring against damage to your car, you're insuring against all the personal injury claims you'd be hit with if you happened to pull out in front of a bus by mistake.