Bankrupcy increasing auto insurance premiums???

mbrcatz

Sort of.

Insurance companies in all states except CA, use CREDIT SCORING for rate determination (among other things). So if your credit is tanked already (under 450), it's really not going to affect your rate. But if the bankruptcy lowers your score to under "around" that area, then yes, it will.

Insurance companies have "run the numbers" to show a direct corrolation between credit score and claims paid out. They've submitted the paperwork to the insurance commissioners in all states, and they all agree with the raw data (just like, 16 year old boys have more claims - it's the pure data). No one has done a study about WHY there's an increase in claims, the insurance companies don't CARE, it's IRRELEVANT. All that matters is that the numbers back up the increased risk.

Scott H

No clue. Insurance companies do check your credit history and someone with bad credit will pay more for insurance because of some correlation between bad credit and statistically higher claims. I guess the thinking is someone who can't handle their financial affairs may not exercise proper caution when driving or something like that.

that's not exactly what happens. insurance companies DO look at your credit score and this is factored into your rate. bankrupcy affects your credit, obviously. so, the worse your credit is, the worse your rate will be. but there are SO MANY other factors that companies look at that bad credit alone doesnt mean u get a really high premium. the insurance companies are allowed to do this because it has been statistically proven that people who are not financially responsible also tend to be more likely to be involved in accidents or to get a violation. you may not like it, but all companies use credit reports now. i work in insurance and i personally think it's pretty sh*tty too, but insurance rates are approved by your state's insurance commissioner, so you'd have to take it up w/ them if you have a problem.

kokopelli

Statistically it has been shown that people with bad credit are more likely to file automobile insurance claims. This is the basis for any such increase like that. Conversely, people with excellent credit are likely to receive a discount.

UCANTCME

WHY DON'T YOU JUST CALL YOUR LOCAL DMV OFFICE, THEY WILL BE ABLE TO ANSWER ANY AND ALL OF YOUR QUESTIONS.

wizjp

Never seen such a statement.

JuneB

No doubt the easiest way to get insurance quotes is on the web.
Why would you waste your time on the phone calling around?
the last time i needed quotes on insurance i used one of these comparison sites and it was great.
this is the site i used and it was quick like less than 5 mins.
The last thing I want to do is listen to elevator music while waiting for a salesman.
Anyway I got good quotes and ended up saving money so I was happy.
So shop around and compare quotes which is easy on the net.
Good starting point is at this site.

http://www.knowledged.info/go.php?link=insurance

Good luck.

John K

find this hard to belive -- but could be true -- after all filing backrupcy (legal document that is always filed with the courts and it is open to the public) shows that you cannot pay your bills -- depending on which company you use they might and most likely will consider you a risk --- risk ='s higher premium

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