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How to save $400/year! - Page 3

post #41 of 58
Quote:
Originally Posted by llamalluv View Post
2. I still stand by my assertion that simply having bills does not cause you to have bad credit. It's by not paying them that you get bad credit. Which goes right back to the auto insurance company's right to charge more to people who don't pay their bills.
Of course having bills doesn't cause you to have bad credit.
Having bills that you can't/don't/won't pay causes you to have bad credit.
Filing for bankruptcy because there is no way you can pay your medical bills (which happens FREQUENTLY in this country) causes you to have bad credit.

But none of that is really relevant. It's reasonable to charge people with bad credit more if you're worried that you will provide them services that they won't pay for. You're taking a risk that you'll give them something for nothing. Credit cards, even utilities, that makes sense.

But car insurance doesn't work that way. They don't give you anything unless you get in an accident, and if you haven't paid your bill with them then you're simply not covered. It would be a bit like charging someone more to put something on layaway if they have bad credit.

Now, if there's some indication that people with poor credit scores are bad drivers, that's a different story, but that's not what we've been taking about here.
post #42 of 58
Quote:
Originally Posted by JesiLynne View Post
: I agree that everyone should really check out who is cheaper. I was shocked at some of the quotes I got, and then even more shocked to find that some quote are BASED ON YOUR CREDIT SCORE! :
It depends by state. In Michigan, all insurance is determined by credit score. It is also illegal to be uninsured here. We also have some of the highest rates of insurance because it is a "No fault" state. It really sucks.

We've compared our rates with other people in our area and seem to have very low rates for our region, but they are still outrageous. We pay $850 every 6 months for 2 tiny, economy cars with high safety ratings. It's nuts! :

And ETA, we've never made a claim or had an accident.
post #43 of 58
Quote:
Originally Posted by prothyraia View Post
Now, if there's some indication that people with poor credit scores are bad drivers, that's a different story, but that's not what we've been taking about here.
The last time I called our agent to see if there was any way to get our car insurance rates down, he said he could run our credit, and that if we fell into one of their top two "categories" (A or B), then maybe that would help.

Somehow, we were a C. :

This was the first time I had any idea that our rates could be tied to our credit score. And I had always thought that our credit was pretty darn good, so I was like, "what?"

I said I have NEVER paid you late, I have never paid ANYONE late... Never missed a payment or had any sort of trouble with them.

He said they go by your credit score because they figure if people have a lot of money problems, they are more DISTRACTED DRIVERS. "They have a lot on their minds, and so, are at a higher risk of getting in an accident."
post #44 of 58
Statistically, people with poor credit scores file 40% more insurance claims than people with high credit scores (according to the Insurance Information Institute). So...poor credit = higher premium. It's not because you might not pay your bill, it's because of the statistical risk category, which insurance itself is based on.

Just like people in floodplains file more water damage claims, so their flood insurance is higher than those not in floodplains.

It's statistically based on a demographic. It's not an insinuation that you can't pay your bills.
post #45 of 58
I almost switched, progressive showed a $100 less per 6 months, then I scrolled down to buy and find out that rate was only good if I paid in full. Paying monthly (like I have to), it's only a little tiny less then my current one. Oh well, was worth a try!
post #46 of 58
We found State Farm to be a fine company. Our rates went DOWN when we added Renter's Insurance. That blew my mind. lol
post #47 of 58
its outrageous the way companies can jerk you around! we had usaa and our rates went UP $30 a month for no reason. we have full coverage so we were up to $230 a month now. its horrible. i went to geico and am now saving $70 a month ($165) for the same thing. i remember switching from american family to proggressive and saving like $150 a month! I mean really WTH? i'm sure next year we'll be switching again! I had an accident about 2 years ago but thats all we have on our licenses anymore. Ugh i can't wait to hit 25 (is that still a good age when price drops? cause i don't WANT to get older hehe)
post #48 of 58
Married rate is the same as turning 25, it won't drop, unless some companies do it. Geico doesn't drop your rate at 25 if you're married. It will drop once it's been a year since the accident though!
post #49 of 58
Geico rocks.
post #50 of 58
Quote:
Originally Posted by dhinderliter View Post
its outrageous the way companies can jerk you around! we had usaa and our rates went UP $30 a month for no reason. we have full coverage so we were up to $230 a month now. its horrible. i went to geico and am now saving $70 a month ($165) for the same thing.
Now, see, that's funny....

I had Geico for quite some time and switched to Progressive because it was cheaper. Then, when we moved to the city, our insurance doubled with Progressive.

So I wound up switching to Metlife. Metlife gave good rates. But I discovered last year that USAA was even cheaper than Metlife. I pay $113/month for two cars, one with full coverage and one with liability.
post #51 of 58
Thread Starter 
ARGH! Okay, sorta an update on this, sorta just a vent.

State Farm called me today and said they were going over what they just sold me (car insurance) and the info and stuff. Then they tell me that since I didn't tell them about an accident it messes with the rates and it would be going up substantially. Uhhh... I've never ever ever been in an accident. My car was hit one time (unoccupied) and the other person's insurance company fixed it so it's not on my record at all (obviously I wasn't in the car so I was not at fault!). So I got more details from them and apparently my car was in an accident in March 2007. I bought the car in April 2007 (doh... really shouldn't have trusted the dealer that it wasn't in any accidents).

To make it freakier- the person who was the owner of the car had the same first name as me, an eerily similar last name and same middle initial. And, to make it worse, THE SAME DRIVERS LICENSE NUMBER! How this happens, I don't know. How in the world 2 people can have the same drivers license in the same state.... I don't know. So State Farm is having me jump through hoops to try to prove that this was not me, I didn't even own the car at the time. I had the insurance company who originally insured me with that car fax them the paperwork so hopefully that clears it up. If not, I'm going to have to fax them a copy of the paperwork from when I bought the car
post #52 of 58
Quote:
Originally Posted by StephandOwen View Post
To make it freakier- the person who was the owner of the car had the same first name as me, an eerily similar last name and same middle initial. And, to make it worse, THE SAME DRIVERS LICENSE NUMBER! How this happens, I don't know. How in the world 2 people can have the same drivers license in the same state.... I don't know.
This makes no sense. I'd be at the license branch, pronto.
post #53 of 58
We have always had State Farm because my entire family has. My grandma was at-fault in a wreck and they were good to her, so my parents also use State Farm because of that good experience, so I also use State Farm because of that. We all have the same agent too.

They are charging DH an extra $17/6 months for this year because of his most recent at-fault wreck. Considering his record, I think they are being fair.

Quote:
This makes no sense. I'd be at the license branch, pronto.
ME TOO! Sounds like somebody effed up your records!
post #54 of 58
Quote:
Originally Posted by StephandOwen View Post
How in the world 2 people can have the same drivers license in the same state.... I don't know.
You can't, I don't think.





Quote:
So State Farm is having me jump through hoops to try to prove that this was not me, I didn't even own the car at the time. I had the insurance company who originally insured me with that car fax them the paperwork so hopefully that clears it up. If not, I'm going to have to fax them a copy of the paperwork from when I bought the car
Oh, joy. : I'm curious to know what happens.
post #55 of 58
Quote:
Originally Posted by StephandOwen View Post
THE SAME DRIVERS LICENSE NUMBER! How this happens, I don't know.
Different state? That's the only way I could imagine that could happen. Since used cars are often sold at wholesale auction (the dealer you trade it in at doesn't necessarily sell it), it can easily and quickly end up in a new state.
post #56 of 58
Quote:
Originally Posted by Usually Curious View Post
If I don't pay my bill, they don't cover any accidents. THAT is why I think insurance based on credit score is a scam!
It depends on how your insurance is billed. If you pay in advance, sure. If you pay in arrears, then they cover you before you have paid.
post #57 of 58
Thread Starter 
Quote:
Originally Posted by Jenelle View Post
This makes no sense. I'd be at the license branch, pronto.
And I would be. But I now live in Kentucky. The license is in Michigan. Not exactly a stones throw away, ya know?

Quote:
Originally Posted by dogmom327 View Post
Different state? That's the only way I could imagine that could happen. Since used cars are often sold at wholesale auction (the dealer you trade it in at doesn't necessarily sell it), it can easily and quickly end up in a new state.
Both my license and the other persons license are from Michigan. The lady from State Farm said it's possible someone, somewhere along the line, messed up with one number or something so it's coming up as mine.

And now I really have to get in and get my Kentucky license

No update though, haven't heard from them. Last I heard they were going to wait for the fax, see if that was enough info, run the numbers again (they apparently mis-heard my SSN and the last number was wrong) and call me back.
post #58 of 58
Thread Starter 
Phew. After many many phone calls and a letter from State Farm saying the canceled my insurance.... we finally got it figured out. My car was not in an accident. Apparently someone with a very similar name to me was in an accident in a 2003 Dodge Durango in March 2007. She was IN Michigan at the time of the accident AND she had the same drivers license number as me but licensed in a different state. Somehow this information got messed up and it was linking it back to me. Definately a freak accident. The lady who finally cleared it up said in all her many years of doing this she has NEVER seen anything like this. What a mess!

But, insurance is continuing at the rate I was quoted at. It was one major headache, but cleared now.

And now I have a Kentucky license so I can avoid all this again. LOL!
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