Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Insurance
Profile Image

Question By
torja

1 Contribution
5 People Helped
Why is my Insurance Score low when I always pay on time, have 47 year history of no claims!
I held Insurance for 47 years with no claims... Why is my score in POOR range... most likely to file a claim? Doesn't personal history count for anything? This is Theft by deception because I am charged a higher rate based on a statistical model that is knowingly flawed!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-10 of 15Results per page: 5 | 10 | 25Page 1 of 2   Previous | Next
1 Contribution
36 People Helped

Helpful to 36 out of 51 people

My pet theory, which is just idle speculation, is that you're more of a risk to an insurance company if you pay all your bills in full and on time.  People that pay their premiums sporadically, fail to report changes to their car, and generally live a more carefree lifestyle may be statistically less likely to file a claim, file it properly, or have their account paid up to actually benefit.  I'm wondering if they'd rather have a dozen cheap accounts from guys that forget to pay every other month, than one from a studious customer that pays in full every year, and one day finally has an accident that costs them thousands when his spotless account leaves them no loopholes to get out of their obligation.  Just a theory, and I guess we'll never know as long as the formula for calculating our worthiness is a secret.

Reply by
Insguru

1 Contribution
6 People Helped
Helpful to 6 out of 9 people

Enter Your Reply

working in the auto insurance business for 44 years and counting. Insurance statistics show that people who pay in full are less likely to turn in claims, especially small claims. Small claims are costly to an insurance company because their cost is more than just what is paid out - admin fees, possible investigation, adjuster fees, sometimes independent adjusters are used, etc. If you get a renewal notice with a paid in full discount offering, you are in very good standing with the ins co. The discount can be significant 10-15%. Take advantage of it if you can. Some companies will offer same discount even if you pay semi-annually. An insurance score is typically higher than your credit score. Strive toward increasing your credit score and your auto rates will go down at the anniversary renewal date. The determination and calculation is usually done 90-120 days before your renewal. 

1 Contribution
22 People Helped

How do I getmy insurance score

Helpful to 22 out of 29 people

How do I get my insurance score

2 Contributions
74 People Helped

Low Insurance Score

Helpful to 26 out of 37 people

I, too, have a low auto insurance score. My actual credit rating is in the "Excellent" catagory. I've not had an at fault accident, (thank God), my payments are paid early, and even auto deducted for the last couple decades. I've driven for close to 50 years, and I'm showing low. I asked my agent, but she wasn't aware of this score, which made me feel better, but stil... where, why and how is this score obtained. How may we dispute it, or raise it?

1 Contribution
2 People Helped
Helpful to 2 out of 4 people

It is your age,if you have driven for 50 years your age has go to be in the sixtys.

Insurance companys treat you like you kids did when they wer teenagers, they think you are to old to know anything.

1 Contribution
21 People Helped

Helpful to 21 out of 27 people

If you find an answer to this please let me know. I have NDEVER been late or missed any payment EVER. 100% of on time payments, yet I get less than high marks. It's a racket. Now credit cards have reduced my credit limit because I paid them off! It's black mail. They crucify you for being diligent. If you don't use their card they reduce the limit and damage your rating. It's a no win so they can charge a higher rate!!! HELP!!

1 Contribution
8 People Helped
Most Helpful Response

Low Insurance Score

Helpful to 8 out of 9 people

My insurance company told me I couldn't get the lowest premiums because of my insurance score. My credit rating is Excellent; I have had no insurance claims for over 10 years. They cannot explain to me why the score is only Good. Insurance companies are just plain rip-off artists!

Reply by
JackieVil

1 Contribution
1 Person Helped
Helpful to 1 out of 2 people

true true

1 Contribution
9 People Helped

Poor autoinsurance score based on what ?

Helpful to 9 out of 13 people

I have high credit score (not only here at creditkarma but a real one from the credit bureaus) and here my auto score is poor. This is not a credit score but some sort of artificial number created in somebody's sick mind and presented as scientific truth. This is how insurance companies which I think are worse than banks keep us all hostage and we are being ripped off with high premiums without having any violations or accidents.

1 Contribution
12 People Helped

auto insurance

Helpful to 12 out of 18 people

52 years and never turning in a claim .but received low score. What polished apple gets a good score

Top Contributor
30 Contributions
58 People Helped

LexisNexis

Helpful to 1 out of 1 people

Basically the insurance industry uses "Reason Codes" provided by good ol LexisNexis to keep your rates high. It is, IMO a practice that should be illegal. They are predicting an accident claim before it happens.  For example..... "Code 0134 - Number of Department Store Accounts Established. Insurance industry research shows that consumers who open accounts with department stores experience more insurance losses." Yes - if you have a department store credit card, they can use that against you to raise your rates. I know this code because they used it against me before! There are hundreds if not thousands of codes with similar, and often contradicting, reasons. You can simply google the above reason code and find the page that lists them. Its sickening. There is no way to get a perfect score because they can and will use any excuse to keep your score from being perfect! 

2 Contributions
5 People Helped

For information - car insurance

Helpful to 1 out of 1 people

I cancel my car insurance earlier and planning to get like $25 for unfinish month, a 3 weeks later I got check for $0.74 SURPRISE

I was told canselation fees is 10% of premiums !!! If I let it expared by it self, I wood have month of insurance

That need to know: DO NOT CANCEL INSURANCE AHEAD !!!!

Top Contributor
30 Contributions
58 People Helped

LexisNexis

Helpful to 1 out of 2 people

Basically the insurance industry uses "Reason Codes" provided by good ol LexisNexis to keep your rates high. It is, IMO a practice that should be illegal. They are predicting an accident claim before it happens.  For example..... "Code 0134 - Number of Department Store Accounts Established. Insurance industry research shows that consumers who open accounts with department stores experience more insurance losses." Yes - if you have a department store credit card, they can use that against you to raise your rates. I know this code because they used it against me before! There are hundreds if not thousands of codes with similar, and often contradicting, reasons. You can simply google the above reason code and find the page that lists them. Its sickening. There is no way to get a perfect score because they can and will use any excuse to keep your score from being perfect! 

Results 1-10 of 15Results per page: 5 | 10 | 25Page 1 of 2   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.