Thanks, so as long as I don't have any accidents, I'm good.
I hope everyone can join me in keeping their fingers crossed!!
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State Farm Didn't Incrase My Rates!!!
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I work in a State Farm agency. It will vary by state, but I can speak for State Farm in NC. Credit is not used in scoring for existing customers but is used for new business quotes. For new business, normally a bankruptcy will cause you to be in the highest rate plan if physical damage coverage is offered at all. For existing customers, your score will decline and rate increase for claims & loss history and poor driving record.
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Thanks What Money, I live in VA and it looks like that's why I didn't have my rates increased.
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Below is a listing of each state's credit scoring laws as of November 2007.
(Note Michigan Court of Appeals has recently struck down insurance company credit scoring. The insurance companies will likely appeal to the Michigan Supreme Court before a final ruling.)
http://www.insure.com/articles/carin...ring-laws.html
The only state which completely disallows insurance credit scoring is Hawaii.
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Originally posted by Flamingo View PostMomof5....does New York allow credit scoring/profiling? If it does allow it, there is not too much you can do. That is a big jump but it all depends on how much they raised their usual and customary annual rates for everyone in the area you reside. Secondly, if NY does not allow credit scoring/profiling, and you are not comfortable with the explanation they gave you and feel it may be due to your bankruptcy filing, call your Insurance Commissioner's office and advise them and have the matter investigated. If NY does not allow credit scoring/profiling, of course your insurance company is not going to tell you it is due to your credit scores but would get away with trying to say it was due to something else. If you feel the jump was too big for a usual annual increase and your state does not allow credit scoring/profiling, by all means have the matter investigated.
I spent a ridiculous chunk of this morning first waiting on hold, then trying to find someone at the NY Insurance Commissioner's office who even knew what I was talking about. While I was waiting, I found a 6-year-old document online which seemed to indicate that NY only allows credit scoring/profiling when one is applying for a NEW policy. When the person came back on the line, I asked her about that, reading it directly from their web site, and she said she had absolutely no idea and couldn't find anybody who did. Very helpful. I couldn't spend any more time on it today, but I'll keep hunting.
You would think this would be a simple question to answer, wouldn't you?
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Originally posted by momof5 View PostI have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate). $208 for 6 months and now its $281! Quite a jump.
They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
My Dad has State Farm and his rate is the same as it was a year ago so I know that is not true.
I have been with them for 20 years! 1 claim in all those years!
I should also add that the updated bill came about 2 weeks AFTER my discharge. I had already received a bill. The 2nd one said to disregard any previous bills.
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Originally posted by momof5 View PostI have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate)... They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
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I have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate). $208 for 6 months and now its $281! Quite a jump.
They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
My Dad has State Farm and his rate is the same as it was a year ago so I know that is not true.
I have been with them for 20 years! 1 claim in all those years!
I should also add that the updated bill came about 2 weeks AFTER my discharge. I had already received a bill. The 2nd one said to disregard any previous bills.Last edited by momof5; 09-22-2008, 04:44 AM.
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Originally posted by WhatMoney View PostI think the common term used is insurance "credit scoring" - many google hits with that one.
Here's a Consumer Reports article that includes a mention of the few states that have some kind of law restricting credit scoring:
http://editorial.autos.msn.com/artic...umentid=435604
We have had our insurance company since 1984. The only times our rates rose were when we added on varoius newer cars or added on one or more of our 4 children. Our rates also have not risen due to the BK we filed in 2002 due to our long term association with them and our good driving record; however, if prior to this time we switched companies or they dropped us for any reason, and we applied to another company, credit scoring/profiling would have gotten us. That is why it is always best to try to stay with your same company during a BK if at all possible if you have a good record with them and not switch to try to get lower rates. However, they can just pull your credit reports prior to renewal and review your record and raise your rates if credit scoring/profiling is allowed in your state and your BK is now sitting on your credit reports and was not there during the previous renewal period.
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I think the common term used is insurance "credit scoring" - many google hits with that one.
Here's a Consumer Reports article that includes a mention of the few states that have some kind of law restricting credit scoring:
http://editorial.autos.msn.com/artic...umentid=435604
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Originally posted by chloe0724 View PostThey said it's standard practice whenever you have a BK.
Nothing has changed with us and State Farm. We still have automatic payments deducted every month from our checking account and they haven't said "boo" to us.
In fact, we got our "6 month renewal" notice for both vehicles in the mail the other day....and they both went down! We only pay $108/mo for an '03 Escalade, '98 Camaro and homeowners insurance.
Good luck to you!
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Originally posted by WoodSprite View PostThis is great to know, Flamingo - thanks. I'm having trouble finding anything about "credit profiling" in relation to auto insurance, though...is there another term for it? I'll keep digging for a list.
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Originally posted by magyar123 View PostThere is nothing officially on the books about credit profiling. It just happens in states which allow insurers to access your credit report and determine your premiums. You might have a perfect driving record, no tickets, no accidents, but if you have a bad credit history they can charge you more. These insurance companies claim that statistically people with bad credit have more accidents, claims, etc. Which is pure BS.
It's the same profiling BS like cops use in pulling over minorities in lily white neighborhoods, and/or airport security officials taking a "closer look" at folks of middle eastern descent.
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