Insurance

[jec]

Does anyone know if they can cancel your car insurance if they find out about the bankruptcy?

i.e. is is legal for them to do (we have state farm)

if so are there any insurance companies out there who dont do credit checks

[kl030505]

wow. I never even considered this possibility. I too have state farm. My guess would be that if you are insured through them and you continue to pay them it would foolish of them to drop you for that reason, but I don't know for sure. Call state farm and ask them. It might be harder to GET insurance, but if you already are a customer I have a hard time believing it would be a problem.

[Cassiopeia]

Eeek!...I don't think I'd call them and ask!

I recently had my auto insurance renewed (Allstate) and they didn't check my credit rating. Also, had to get a new homeowners policy (Allstate did many mass cancellations in FL), and that new company didn't check credit; I got a very good rate.

I have read some posters on here say that Geico is very good and doesn't check credit. I guess some do, some don't.

I would doubt any company would cancel an existing policy due to BK though. Why would they even check your credit and find out about BK, if you are an existing policy holder?

[SinkingFast]

I would doubt any company would cancel an existing policy due to BK though. Why would they even check your credit and find out about BK, if you are an existing policy holder?

Insurance companies do periodic reviews of customers. Depending on the company, they'll pull your Credit if you have an at fault accident, make some type of change in your coverages, or just cause it's been 2-3 years since they checked on you. There's really no rhyme or reason to their different policies. But insurers do review people on occassion.

While they may not cancel you right out for having filed BK, they may choose not to renew you for any number of reasons. OR, they can make your premiums so unbearable that they force you to go elsewhere.

[jec]

I am agree DONT CALL THEM

I just wanted to know if they found out some other way if they would cancel us

[kl030505]

I'm sorry, I'm failing to see why calling them is a problem. You don't need to provide identifying info. "Hi, I'm shopping around for car insurance and before we get started I just need to know if having a bk on your credit report will disqualify me, provided all else is fine."

Simple, easy. How the heck will they know it was you?

[kl030505]

I just called state farm.

They do not do credit checks, so it has no bearing on whether or not you will be able to remain a customer or become one.

Simple, easy, straight to the horse's mouth.

[WantToBeDebtFre]

Cool. I know where to go if my current insurance company ups my rates. Thanks for calling them.

[treehugger1]

Many states have laws relatd to how insurers can use credit scores to set rates. In Oregon, an insurer can only run your credit on the initial application if they choose. They cannot come back later and review your credit score.

There was a failed attempt to pass a no-credit-check law for insurance here a few years ago, and the industry/lobby ads in favor of the credit-check made it sound as if people with poor credit were responsible for everyone else's insurance costs. I was stunned that folks voted against the referendum.

I'm sure many of us have perfect driving records; poor credit does not relate to our driving habits.

[qwertysue]

We switched from Farmers to Geico in February (we were starting to plan our bk13 and not paying some CC bills). Switch had to do with high Farmer premiums, nothing to do with payment history.

Geico was cheaper right off the bat. We filed in July and in August it was renewal time for Geico. Our rates actually went down!

[jp2861]

Does anyone know if they can cancel your car insurance if they find out about the bankruptcy?

i.e. is is legal for them to do (we have state farm)

if so are there any insurance companies out there who dont do credit checks

Call them from a number they can't see. Act like you're shopping for rates and ask them the question.