A few months ago, I got a letter from my insurance company that they were switching parent companies, and that my checks would from then on have to be sent directly to them instead of my insurance agent.
When I got my insurance bill in the mail, and it had increased by about $100.
Not having caused any accidents in the past year, or received any tickets or citations of any sort, I was immediately curious.
I called my agent asking about the 'mystery increase' and after looking into it, he said it was based on my credit score.
"What?"
As some of you know, I got divorced in 2000 and circumstances surrounding that episode (OK, thanks to my now ex-wife), my credit is fubar.
Concerning that, one would think that after 8 years my credit would have evened out, but even most recently when I was purchasing my new TV (which is KILLER BTW), I couldn't even apply for the Best Buy rewards credit card because of my still rotten credit.
But why should that affect my home and car insurance?
Seems to me that when someone is in an accident, their rates go up. (I'm not sure how it works for home insurance rates)
Why is my having bad credit, grounds for jacking my rates?
As I stated, I've not submitted any claims to my insurance company which by my understanding, is the only 'normal' grounds for having ones rates increased.
I don't know, but it just seems like one thing after another as of late.
2 comments:
I'm not surprised. Disgusted, but not surprised. I think it's time to shop for another insurance company.
shopping won't help you much... Nationwide only uses Good Credit to make auto cheaper but doesn't use the Bad to make it higher.
but ALL companies use it now.
I can tell you why it matters to insurance companies but it won't make you any happier.
I am in your boat if it helps to not be sailing the crappy credit seas alone.
a reid
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