buck183

I've heard through the rumor mill and read on here many times about credit score and insurance rates. Never really gave it much thought.

Fast forward to now...... Got insurance on the Bullet last fall. Had to shop around a little to find a package and price that fit my needs. This was a little new to me as I have always been able to have my needs met by my State Farm agent for the better part of 25 years. Anyway, got a policy secured and then received a letter from the company a couple weeks later. Letter stated something about my credit and how my premium was affected adversely due to it. Never really gave it much thought at the time. My name is tied to a lot of things financially due to our business and other things I have my hands in. It can fluctuate a little, but not enough to concern me.

I recently did a refi on something to take advantage of better rates. In doing so I got a letter from them showing my current credit score of 783. About normal for me. I got to thinking about this a little. If a credit score of 783 adversely affects one's insurance rates, what the hell kind of score does one have to have to get better rates?

I'm beginning to think I'm being hoodwinked. Any agents care to comment?

Buck

Griff

I think the letter is BS. Probably just a way for them try and get more business in the financial division of their company.
No way any rate on anything should be "adversley affected" with a 783.

Rattlesnake Jake

iTrader: (2)

I dion't think your credit score affected your rates. Had it been 683 than it would.
If you feel uncomfortable because of the letter, talk to your agent.

nailit

Its just another way for them to judge driving habits, or profiling!! My score is above 800, but as a finance major and worked in credit out of undergrad, I was always watching what affects my score and to be in banking, you had to have a good score.

Not 100% on this from a insurance perspective, but a good credit score shows whether a person is responsible or not to some degree.

ie. a person with a good score is more like to care for his property and not do stupid stuff that could result in claims.

again, another way to assess risk...

jmoore1225

iTrader: (1)

Buck, just had the same thing happen to me. Score is not quite what yours is but up there. Had just bought a new car a week or 2 prior & I believe another company had ran it as well because i was shopping around for auto & home as also. Was certainly a head scratcher..... Really dont think it affected much of anything tho.

Nailit.... Any tips , pointers besides the obvious of paying your bills & not maxing out credit lines?

buck183

The replies have mirrored my thoughts. Not too concerned about it. Just thought it odd.

Would be nice if someone in the loop could offer some insight to this. I get the profiling and how it helps them gauge one's level of responsibility.

Haven't decided if its worth my effort to make some calls about the letter I received or not.

Buck

baditude

I am not sure about mono-line comapanies, but most multi-line companies do not credit rate boatowners policies. Out of curiosity why didn't you insure it with state farm? Are the motors 500s?

WakezoneINS

Hey Guys... those notices are now notices required by law for all insurance carriers to send when they use your INSURANCE score to determine your given rates.... note I said insurance score. A credit based insurance score is different from your 'credit score number" that banks look at when lending. I've seen someone with great credit have a bad insurance score...

I attached a pdf doc to this post. Hopefully it helps further clarify the difference.

Not all carriers use credit based insurance scoring. One of my carriers, American Reliable, does not use any sort of credit based insurance scoring. Another, does.... each carrier is different.

buck183

I've had everything with my State Farm agent since I was 16 yrs old. I've never had an issue getting anything insured through him/them at a VERY competitive rate.....boats included. When I took them this one they pretty much told me they weren't interested. Well, in so many words they said that. At least that's what I got from them when they gave me a $2,500 quote for my annual premium. Agent even admitted that I needed to look elsewhere.

Motors are 509 cu in.

Buck

buck183

I get the theory. Could one assume with only one claim in 44 years of life that they fall under a low risk score?

Buck