Due to an illness/ disability in our family, despite having health insurance, we still owe thousands in medical bills. Those that would not work with us turned them into collection. They now show on our credit report.
Despite being insured for both our auto insurance and our home insurance for 20+ year with the same insurance company, we got a notice saying our auto insurance had gone up hundreds of dollars per year based on a credit report they obtained. We have never had an accident, ticket, etc. and the amount automatically comes out of our checking each month. Plus, last year, prior to this, they switched us to a preferred group within the company and gave us a discount when we threatened to switch.
How can I find out which insurance companies base your insurance rates on your credit report and or score? Will they tell you outright? This is the first I have ever known that our company did this and was wondering if all of them do it, or do you just know about it when you get a notice like we did?
I get their reasoning but it seems like such a rip off when so many are in our boat- insured but with insurance that is starting to pay less and less and cost more. Plus, they have our checking account and if we were not to pay, they wouldn’t be responsible for us if we had an accident anyway. Seems like a double whammy to me. Can anyone help?
I am in the state of Indiana. Previously they switched us to a preferred group by sending us a letter saying we qualified and the new lower rates. We went in and signed up and the new rates went into effect at renewal..until this latest renewal when they went even higher than our original rate they lowered.
Sorry ED, but American Family is who we have had for all these years and who is doing this credit report thing.