auto/life insurance provider is also creditor

[basalt]

One of my creditors is also a provider of renters insurance, auto insurance and a life policy. I am in the process of closing a checking and savings with them to avoid having them capture that. Should I find a new insurance provider too? I am current on credit payments with them now, but will soon fall behind.

[magyar123]

Close your checking/savings accounts. Make your insurance policy payments with money orders until. Doubt that they will cancel your insurance policies just because you don't bank with them anymore.
Just out of curiosity: Is it State Farm/State Farm Bank?

[Flamingo]

It may be a requirement of them to be able to withdraw payments from your checking account (may be indicated in the paperwork you signed that you agree to that). If you close out the account and they cannot withdraw, they may cancel your policies. Review that paperwork and see if you can make money order payments as Magyar suggested. Make sure you resolve it before any payment is missed so your coverage will not lapse.

[magyar123]

Don't think they can mandate to have your bank accounts with them. That would fly against every freedom of choice provsion of the US Constitution.

[basalt]

Thanks all. Most payments are via check from my checking account with another institution. One of my life policies is auto draw from that same checking account. The insurer is USAA. Does anyone know an insurer that does not use credit history as a rate determinate. Only one I am aware of at this point is American Family Ins?

[Flamingo]

Thanks all. Most payments are via check from my checking account with another institution. One of my life policies is auto draw from that same checking account. The insurer is USAA. Does anyone know an insurer that does not use credit history as a rate determinate. Only one I am aware of at this point is American Family Ins?

If your state allows insurance credit profiling, any insurer will review your credit for rate determination. If your state does not allow insurance credit profiling, they cannot make a determination of your rates utilizing your credit history. Your State's Department of Insurance can advise you whether or not your state allows the practice.

[lrprn]

insurer is USAA.

When we filed Ch 13 2 1/2 years ago, we also had a USAA credit card we owed $12K on, plus USAA car insurance and USAA life insurance. USAA did not file a claim so they won't see a dime of their $12K (which actually makes me sad because they were the only cc of ours that did not jack up our rates and was willing to work with us to avoid filing).

We still have our USAA car and life insurance, and our auto insurance rates have not increased one penny. Don't automatically assume that you're going to be screwed by USAA after you file - it could happen, but we weren't.

[bpn2009]

When we filed Ch 13 2 1/2 years ago, we also had a USAA credit card we owed $12K on, plus USAA car insurance and USAA life insurance. USAA did not file a claim so they won't see a dime of their $12K (which actually makes me sad because they were the only cc of ours that did not jack up our rates and was willing to work with us to avoid filing).

We still have our USAA car and life insurance, and our auto insurance rates have not increased one penny. Don't automatically assume that you're going to be screwed by USAA after you file - it could happen, but we weren't.

We have USAA as well and we asked them about how one could possibly affect another. Unlike other banking institutions, USAA keeps each division as a separate entity (insurance, banking, investing etc) are there own companies, so if you screw up with one it generally won't affect another division.

I had a credit union account when we filed with checking/savings and a loan. Once they received bk notice checking account was cleared and closed. They essentially told us never to call them again.