Without my express permission my automobile insurance company increased my premium for 2008 per my new bill received in January. I was informed the increase in my rate was due to my credit score.
I never had a claim with this company, always paid my bills to them and I have been with them for nearly 20 years - the agent has been a freind of mine since college! I have never filed for bankruptcy nor have I lost a home.
Although states allow the use of credit scores to assess premiums, and Missouri does as long as customers are notified of the use (I was given a 30 day notice in November), it seems odd they are not required to get our permission to access our credit histories.in addition, many of us will have poor credit histories, especially as we loose jobs or have to take low paying jobs in a terrible economy.
Further, credit histories cover many financial relationships a consumer has with various lenders. That one is late on a credit card balance or school loan does not correlate with risk in driving an automobile. If the company wants to look at financial ability to pay premiums, it should look only at the specifcic track record the client has with the company, not with unrelated third parties.
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