Thread: Insurance profiling....

As you may all know some states allow car insurance companies to base their premiums on a person's credit history/score.
This BS profiling, just as bad as cops pulling over African Americans when they drive around in lily white neighborhoods, and airport security folks "paying extra attention/searching folks of middle eastern descent.

I can see some validity in it. If you hit someone and you have to pay that person's deductible or some other liability you have that's associated with your insurance. They want to know how likely you will be to pay. But that I don't think should be significant enough as a reason to use it. Do you know how many states do it? I thought most didn't use credit scoring but I could be wrong.

I don't know which states allow it, but here in California it is NOT.

What I hate most about car insurance is when they profile based on your zip code. I get it but come on guys it shouldn't effect the price that much.

Originally Posted by velveeta-shells

What I hate most about car insurance is when they profile based on your zip code. I get it but come on guys it shouldn't effect the price that much.

Zip code profiling is allowed. State governments agree with insurers that there are more accidents/losses within certain zip codes, primarily low income/racially mixed areas.
But insurers can not do this profiling/rates robbery if you live/garage your car in a low risk zip code but travel/commute into the downtown area of a major city.

I don't see anything wrong with insurance co's using credit records. If you're not responsible enough to pay your bills, why should they think you'll be a responsible driver? I think some of you want to complain about it because it's happening to you, but you know it's the truth. There's nothing wrong with this at all and if anything they should make credit an even more important factor. No different than them using your driving record same thing

Whoa - credit has absolutely nothing to do with driving ability. You can be a responsible driver for years and years, no tickets, no accidents. So why should you be punished/sentenced to higher insurance premiums because you may be a slouch when it comes to credit?

I'm staying out of this one but I can tell you that I have great credit but I'm a reckless driver. Not the safest guy on the road here.