Subject: Re: * *Car Insruance SCAM - Credit Scoring* *

Comments:
: If you have tried to change insurance carriers lately, or are shopping for a cheaper car insurance company- then you have probably found out something very interesting. They used to ask standard questions such as your city of residence, & the make & model of your car. But now just to get a quote- they are also asking for your social security number. This is done to get your CREDIT SCORE. : : If red flags aren't already going up, then maybe this will help. Months ago, I began emailing two major insurance companies (Geico and Progressive) to find out the reason for the credit score check in connection with obtaining car insurance. Perhaps you never thought about it, but try asking the question: what does your credit score have to do with being insured to drive a car? After a little investigating, I found the answer. : : At first the companies were playing dumb and told me that they simply had to do what the insurance commissioners were telling them to do. I was also told by Marie K. Weaver, a Progressive Internet Service Specialist These variables have been identified through studies based on previous claims history and have been determined to be good predictors of auto accident frequency. : So a credit score is a good predictor of accident frequency?? I decided to contact John Oxendine, the State Insurance Commissioner for Georgia about the problem. Here is part of the response I was given by the Assistant Director for Consumer Services Division Robert L. Cloyd: : : The Commissioner DOES NOT agree with credit scoring and in the summer of 2001 he held hearings on this matter. Last year he tried to pass a bill prohibiting its use in Georgia but the Federal Fair Credit Reporting Act allows its use. As you know, insurers believe it is predictive. [of auto accidents] : A bill was passed in our Legislature this year that places restrictions on this practice. It is House Bill 215. : : I also recieved the following from Marie K. Weaver of Progressive: : "Our internal research is proprietary, however, I can provide the attached : research prepared by The University of Texas at Austin. The report was : prepared at the request of Lt. Governor Bill Ratliff. The report concluded : that credit score was significantly related to incurred losses." : My response to Marie: : "I would expect that even without research, it could be assumed that there would be some sort of correlation between auto accidents and lower credit scores- I mean after all, a person who cannot properly take care of their financial obligations, could be deemed detrimental in other areas of life, correct? I have a question: has anyone done a study on the correlation between criminals & credit scores? If not, then perhaps someone should- I mean after all that's exactly what we're talking about here. A lower credit score could not only mean that they might have more auto accidents, but that they might be a potential criminal, rapist, or even a serial killer. That might sound a little off the wall but the premise here is exactly the same. And Im sure youve heard of women who suffer bad credit ratings because of their husbands- It happens quite often in this country. The use of a credit scoring system to judge these women, would mean that they would be treated very unfairly." : : "Long story short, I honestly believe that a credit score should be used to determine CREDIT - not auto accidents, or other matters in life. Sure there are correlations. But at the end of the day in this matter, we are judging people in a way that is not accurate or ethical. When a person is a precursor for auto accidents, their premiums should be raised. Otherwise, they should not be judged before they have actually done the wrong. Our court system does not work this way- why should auto insurance companies." : [I have yet to recieve a reply!] : : : If you stop to think about it, we dont arrest people for robbing banks just because they are walking down the street in dark clothes. So then why do we allow car insurance companies to charge us more, based on what might be in our credit report? Is that any more reasonable? Can your credit rating really be a predictor of how well you drive your car and how many accidents you will be in? The insurance companies believe so, and have done elaborate studies to make it all look legit. But in reality, they have simply found a legal loophole for getting more money out of us - and they are making out like bandits! : : If you do not agree with the practice of credit scoring, then please take a moment to email the people with the power to change this. Remember, the government and big corporations will continue to steal from us and pass laws that only benefit big money -as long as we will allow them to. : : Here is a few people you can send comments to: : : GA Insurance Commissioner : John Oxendine John.Oxendine@mail.oci.state.ga.us : Also: www.inscomm.state.ga.us/ : : Assistant Director Consumer Services Division : Robert L. Cloyd Robert.Cloyd@mail.oci.state.ga.us : : : Progressive - To whom it may concern webmaster@progressive.com : : GEICO: Internet Sales Representative : Clorist Jiggins autosalessupport_vb@geicomail.com : More info: https://www.geico.com/insproducts/index.html :

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