Court Weighs Use Of Credit Scores

[cupcake]

What they are looking at is "if" you were to file a claim, would you be likely to file a claim. The insurance credit score, while it does factor in loss history, only generally seeks to determine your likelihood of filing a claim. It looks at the chances of you filing a claim which the insurance company would need to pay.

So, in essence, yes... a rich person is less likely to file a claim, especially for just damage to the vehicle. The rich person would pay for fixing the car. The liability area is one in which everyone is basically on equal footing, and the insurer would use loss history combined with one's driving record to determine risk for that category.

This is especially true in Michigan, because it is a no-fault insurance state. If a person gets in an accident and makes a claim for damage to their vehicle, that person's auto insurance carrier foots the bill regardless of who was at fault for the accident. So, in other words, in Michigan you insure yourself and your own vehicle. Depending on the coverage, the only issue relating to fault would be payment of any deductible. Obviously, this does not apply to liability coverage. You carry liability insurance to protect yourself in the event that you cause an accident, injure another party and/or get sued.

In all likelihood, a truly rich person would probably own the vehicle and would only be carrying liability anyhow.

I can't say that I completely agree; I think it depends on the year and make of the car in question. If you're driving around a car that would cost upwards of $75k to replace in the event of a total loss, a person would be a fool to not have collision coverage on it.

[justbroke]

I can't say that I completely agree; I think it depends on the year and make of the car in question. If you're driving around a car that would cost upwards of $75k to replace in the event of a total loss, a person would be a fool to not have collision coverage on it.

I know many wealthy folks. They don't carry insurance because it costs too much. Seriously, that's what they tell me! They'd rather take the risk (by being "self insured") of that occurring over paying someone else to assume that risk. The truly rich will still carry some liability insurance and certainly an umbrella policy.

So, it's not the make, model or value of car. For a wealthy or rich person, it's a business decision on carrying anything other than liability.

[cupcake]

I know many wealthy folks. They don't carry insurance because it costs too much. Seriously, that's what they tell me! They'd rather take the risk (by being "self insured") of that occurring over paying someone else to assume that risk. The truly rich will still carry some liability insurance and certainly an umbrella policy.

So, it's not the make, model or value of car. For a wealthy or rich person, it's a business decision on carrying anything other than liability.

I'm thinking that my definition of wealthy is different than yours. I tend to think of upper middle class folks as being wealthy when, in reality, they are not. I can definitely see why those who are truly wealthy would not have collision coverage. To them, $75k isn't the world, like it would be to me!!

[justbroke]

I'm thinking that my definition of wealthy is different than yours. I tend to think of upper middle class folks as being wealthy when, in reality, they are not. I can definitely see why those who are truly wealthy would not have collision coverage. To them, $75k isn't the world, like it would be to me!!

There is definitely a difference between what most think about what defines rich and being wealthy. So, yes, I was talking about people who spend $75K on a weekend in Vegas... and think nothing of it. These are people with a net worth well over $5M.

If I had a $75K car, I would certainly be fully insuring it!

[OhioFiler]

This is especially true in Michigan, because it is a no-fault insurance state. If a person gets in an accident and makes a claim for damage to their vehicle, that person's auto insurance carrier foots the bill regardless of who was at fault for the accident. So, in other words, in Michigan you insure yourself and your own vehicle. Depending on the coverage, the only issue relating to fault would be payment of any deductible. Obviously, this does not apply to liability coverage. You carry liability insurance to protect yourself in the event that you cause an accident, injure another party and/or get sued.



I can't say that I completely agree; I think it depends on the year and make of the car in question. If you're driving around a car that would cost upwards of $75k to replace in the event of a total loss, a person would be a fool to not have collision coverage on it.

It's ridiculous ideas such as this that prove government interference is just plain wrong.

[backtoschool]

In all honesty, some Michigan's insurance premiums are too high and they are definitely credit score based. When I moved to Michigan from nyc last February, I got rental insurance. Because my credit score had recently tanked 40 points (it was still 699 mind you), I was quoted a rental insurance rate that was higher than nyc!

I live in Ann Arbor, Michigan, a low crime university town.

I think my credit score drop was used unfairly by State Farm to gauge me while they still can before the law changes.

[OhioFiler]

In all honesty, some Michigan's insurance premiums are too high and they are definitely credit score based. When I moved to Michigan from nyc last February, I got rental insurance. Because my credit score had recently tanked 40 points (it was still 699 mind you), I was quoted a rental insurance rate that was higher than nyc!

I live in Ann Arbor, Michigan, a low crime university town.

I think my credit score drop was used unfairly my State Farm to gauge me while they still can before the law changes.

You poor thing, I'm sorry.

[backtoschool]

You poor thing, I'm sorry.

Are you sorry I live in Ann Arbor Michigan, or sorry I got rate-jacked by State Farm?

[OhioFiler]

Are you sorry I live in Ann Arbor Michigan, or sorry I got rate-jacked by State Farm?

Mostly for your residence choice.

[backtoschool]

Mostly for your residence choice.

Of course I knew that's what you were pitying me for.

I was a Wolverine for my undergrad degree and I am a Wolverine again for my second graduate degree.

[OhioFiler]

Of course I knew that's what you were pitying me for.

I was a Wolverine for my undergrad degree and I am a Wolverine again for my second graduate degree.

Fool me once shame on you...fool me twice shame on me! I can't believe you went back!

[backtoschool]

Fool me once shame on you...fool me twice shame on me! I can't believe you went back!

I am in the middle of a mid-life crisis and wanted to relive my past.

[OhioFiler]

I am in the middle of a mid-life crisis and wanted to relive my past.

You could have bought a hula hoop instead!

[justbroke]

You could have bought a hula hoop instead!

Now that's funny stuff right there!

(I'm actually in Romulus right now... missed my flight.)

[backtoschool]

Now that's funny stuff right there!

(I'm actually in Romulus right now... missed my flight.)

Are you implying that the vision of me with a hula hoop is funny?