Insurance

[NSXlent in az]

I have had the same experience with farmers! I was paying around $1500 per year with them for a 97 NSX-T. I have 3 other cars and my home with them. This year they raised my policy to (are you ready) $3500 per year just for the NSX. I called and they gave me some crap about re-rating the car, and the stock market being off. I should note that I have not had a ticket or accident in the last 7 years! I'm going to a collector/exotic policy now for around $850 per year. These programs are a bit limiting, but I can live within their rules... To reward farmers, I'm moving all my stuff to other companies as they come up for renewal...

-Shawn

 

[Saturn]

Nationwide sounds interesting. Just went to their site, but they don't offer auto quotes for CA drivers.. ??

 

[huckster]

i think its really bogus how insurance will raise rates without a letter or any justification.

liberty mutual has been pretty good for us, we have homeowners and all three vehicles thru them. they didnt tack much on for the nsx, surprisingly. However, they didnt lower my rates when i traded my escalade in for the volvo---that SHOULD have been a rate reduction. they still havent responded to my enquiry.

FYI, all insururers are raising rates pretty egregiously. I'm fairly happy if my current provider stands pat.

 

[Aiken Drum]

Farmers went to hell this year. They're crap.

Here's what they did to us: We're a three-person family, all adults, and every single bit of insurance through Farmer's (house, personal liability, cars x 3). When I got my NSX and handed down my old Accord, Farmer's upped all of our rates significantly.

Why, you ask?

Well, because any time you tweak anything, Farmer's automatically does a credit check. They also do one every six months regardless of tweaking.

And guess what?

Too many credit checks in the past 12 months raises your rates. Oh, and if you're three people, they still compare the total checks for all of you against the same threshold.

Neat trick, huh?

Oh, and when we complained, the agent basically said, "Too bad. Have fun getting a policy with someone else." You see, even though the other companies may not try to artifically inflate the number of credit checks you have, they DO all have the same policy about higher rates if you have too many. So, Farmer's totally screwed us, they knew they did, and they were happy about it because they knew there was no alternative for us for nearly a year.

We're going through the next 12 months, careful to avoid anything that will cause a credit check, and then we're telling Farmer's to go eff themselves. They have permanently lost our business (x3), come the end of the year.


[This message has been edited by Aiken Drum (edited 17 March 2003).]

 

[nsxtasy]

Originally posted by Aiken Drum:
You see, even though the other companies may not try to artifically inflate the number of credit checks you have, they DO all have the same policy about higher rates if you have too many.

I don't know whether that's true or not.

I would suggest trying a couple of insurance companies NOW for quotes on all your business. In particular, I would discuss this with State Farm, which probably has an agent close to your home, and over the phone with one of the highly rated companies like USAA or Amica. (One of the advantages of State Farm is that they have an actual person you can ask questions like this of, before committing yourself to getting a quote.)

You have nothing to lose and you might be able to ditch Farmers sooner rather than later.

$.02

 

[Aiken Drum]

Been there, done that.

That's how I know the other companies have the same policy regarding too many credit checks.

We actually have an independent we use to get other kinds of insurance, and she's really good, but until recently we haven't needed her help with the sort of stuff that we had going through Farmer's. When this happened, we got her on it, and she looked around and basically said, "You're f***ed." She's nice, so she didn't actually say it that way, but that's what she meant.

Live and learn.

 

[ck]

From what I understand, excessive credit checks only raises your FICO score by 15-20 points. If you are being negatively affected by that increase alone, due to credit checks on the part of the insurance company, you should ask them to look at the details of your credit report as to why you have excessive inquiries.

 

[huckster]

well, sorry to hear about the rate hike and the credit score beating.

a little additional info:

credit scoring involves multiple factors which are used to compute your scores. Multiple enquiries are one of these factors. Some peoples overall credit score will be hurt more than others based upon number of enquiries--it is NOT just an automatic 15-20pt hit. I've seen people who are dropped 80pts with no recent derogatory credit.

the score system looks most heavily at your ability to manage revolving credit(ie credit cards). have three-five charge cards with balance less than 50% of available limit and pay them well, and you are more likely to have better scores.

mortgage enquiries or car enquiries are ok and not computed if you do this within a narrow window of time. stretch your shopping out over a couple of months and your scores are effected.

insurance providers(most anyway) pull credit and use this to determine your risk. Insurance enquiries do get calculated into your score irregardless of the period of time over which you shop. so go insurance shopping and your scores may drop.

most insurance companies do NOT get written authorization to pull your credit.

if anyone wants to private me i can elaborate.

 

[12AMNSX]

Here is some additional information regarding credit scoring.

From what I understand, excessive credit checks only raises your FICO score by 15-20 points.

The higher your score, the better. Therefore inquiries lower your score. If you want to know more about FICO scoring go here http://www.myfico.com/myfico/CreditCentral/ScoringWorks.asp

I've seen people who are dropped 80pts with no recent derogatory credit.

It’s unlikely that an inquiry will drop a score to that extent. It’s most likely going to be a 5-10 point drop.

the score system looks most heavily at your ability to manage revolving credit(ie credit cards). have three-five charge cards with balance less than 50% of available limit and pay them well, and you are more likely to have better scores.

Not necessarily so. FICO uses hundreds of factors to calculate a score. My score is near 800 (which is pretty high) and I have around 20 credit cards. The model that is used to calculate the score is a MAJOR trade secret and no one can predict exactly what will improve your individual score.

mortgage enquiries or car enquiries are ok and not computed if you do this within a narrow window of time. stretch your shopping out over a couple of months and your scores are effected.

I don’t know the insurance industry, but I have 18 years in mortgage. Multiple mortgage inquiries will now count as one inquiry for a 30-day period.

BTW, try Mercury insurance. I have had Mercury for many years and have not been able to find a lower quote.

[This message has been edited by sr71tg (edited 17 March 2003).]

 

[KGP]

Originally posted by huckster:
most insurance companies do NOT get written authorization to pull your credit.

Humm, Experian has been pretty strict with us with regards to credit report authorization, however we are not an insurance company. How can an insurance company run a report without a consumers consent?


[This message has been edited by KGP (edited 17 March 2003).]

 

[snapper]

Originally posted by KGP:
Humm, Experian has been pretty strict with us with regards to credit report authorization, however we are not an insurance company. How can an insurance company run a report without a consumers consent?

The Fair Credit Reporting Act (FCRA) outlines specifically who can see your credit profile. Businesses must have a "legitimate business need," and a "permissible purpose," as stated in the federal law to obtain your credit file. Otherwise, only you, and only those who you give written permission, can access your credit files. Your neighbors, friends, co-workers, and even your family members cannot have access to your credit profile unless you authorize it. Some examples of those who can access your credit files are:

* Credit grantors
* Collection agencies
* Insurance companies
* Employers

 

[addisonrecruiter]

I'm with Allstate and pay about $100/month.

Clean driving record
36 yr. old male
One car
Full coverage
$500 Comp/Collision Deductable
$250 Theft Deductable
50/100/50
Uninsured/Under-insured motorist coverage
Rental car/towing

------------------
'91 Black/Black - XSNSX

 

[nsx4fun]

Hey Mr. Saturn,

Hmm?!?!?!

I live in CA and have Nationwide. I also recently added my motorcycle to policies they have on me. i have experienced some funny info from them when i was getting a new policy for my motorcycle, so you may try again and ask for forms via the USmail to submit for quotes. some stuff, they don't want to do over the phone or online.

Good Luck

 

[huckster]

sr71tg, you are right about the well kept secret.

i recently had the good fortune to receive 'training' from a major credit bureau provider.

some of my comments came straight from that training.

of course there are so many factors that effect the score, that you could have the perfect highscore profile in every area but one(such as recent numerous enquiries), and see little to no drop in scores.

conversely, i see numerous reports with perfect pay history and scores in the low 600's, apparently due to numerous enquiries, too many or too few credit cards, not enough tradelines with greater than two year history, et cetera.

if you ever want to talk shop, give me a call. 800 678 6310. some of the info i received was revealing, rather counter-intuitive, and not common knowledge within our industry.

 

[huckster]

quick rant on the insurance industry;

can anyone explain why insurance companies should base their rates upon your credit report?

they are NOT a creditor--you pay in advance for the coverage--so they shouldnt have any concern with your pay history with other creditors.

i doubt there is a correlation between your driving record and your credit history. can someone verify this??

any insurance industry gurus out there? at first blush, insurance agencies using credit bureaus to help determine your rate sounds like a scam.

 

[Lud]

Originally posted by huckster:
any insurance industry gurus out there? at first blush, insurance agencies using credit bureaus to help determine your rate sounds like a scam.

A lot of things about the insurance industry sound like a scam... what's new? Anyway, here is some info on credit score use in insurance:
http://www.insure.com/auto/creditscores.html

 

[Tom Larkins]

Originally posted by huckster:
quick rant on the insurance industry;

can anyone explain why insurance companies should base their rates upon your credit report?

they are NOT a creditor--you pay in advance for the coverage--so they shouldnt have any concern with your pay history with other creditors.

Hey Breck,

Its called profile(ing), I know its a bad word but thats what they do. They make a determination on your risk not b/c you pay in advance and that why they look at your past credit history and don't forget they look at the zip code too. Why.... Economic demographics, crime stats on auto theft.

I just got my insur. bill for home and cars other than the NSX. Up 38%, why ? The cost of 9/11 or so they say? Buy Insurance stock !!