Insurance cost after BK

[justplaintired]

I was curious if your cost of insurance for your home or car went up after filing BK? We have been with the same co for probably 15 yrs and I do know they check our credit from time to time. I am hoping we can stay with them. But i don't know once we have filed. Our agent is a friend of mine and I hate that she will know.

Is it a good idea to change co before we file? Or should we just wait it out? I am hoping it won't go up too much, that would blow our budget and we are starting to figure out how to live on one.

[magyar123]

Depends if your state laws actually allow insurers to profile you - as far as credit is concerned.

[HHM]

Not sure if the rates will "increase". Odds are, if you stay with the same company, your rates will be unchanged (except for any natural increase), but if you were to switch to another company, then your credit report (as part of your application for insurance) can become a factor and you may not get the companies best rates as a result.

[justplaintired]

Funny thing I just went to my insurance co website. Erie Insurance. Anyway they call it insurance score instead of credit score. Same thing from what I read. They are not allowed to deny insurance due to your credit score. But from what I read they can raise my rates because I am considered a greater risk because of my credit score.

Now that really doesn't make sense to me at all. Like all of a sudden after being insured with this co for atleast 15 yrs I am more likely now that I am filing BK to suddenly start having tons and tons of claims??? I don't think so. I guess time will tell on this one.

In the long run it doesn't really matter, there isn't much we can do about it, and not filing in order to keep my insurance cheaper won't save us. If they want to up my rates they will. We had great credit before this and frankly it just caused me nothing but sleepless nights, far as credit goes, I honestly don't care. I had bad credit most of my adult life until we bought this house. Someday maybe that will matter to me, right now, all I care about is sleeping at night, not worrying about which cc payment was due and making sure I sat down here and got those paid on time, regardless if it left us any money for food.... so if my insurance co wants to up my rate, so be it.