Jaw Breaker wrote:
Dr. Kenneth Noisewater wrote:
And he gets the Good Student Discount.
I'm surprised those haven't been outlawed. Several years ago the insurance industry started to use credit scores as one of the factors in determining rates. Turns out the correlation between someone having bad credit and then making an insurance claim was extremely high, even higher than having a lot of tickets. Of course, people with poor credit bitched and moaned, saying that using credit scores was unfair and discriminatory. So the insurance industry backed off. The funny thing is, no one ever complained about Good Student discounts even though the principle is the same (using an apparently unrelated criterion to figure insurance rates).
Credit scores are highly effective in setting personal lines rates.
In any case, I once asked a large property insurer what is the most effective piece of information in setting homeowner's rates, and he said the credit score. But what I found more interesting is how the economy plays into fire losses on properties. There is a direct correlation between the rate buildings/houses burning down and the health of the economy. Apparently, a lot of people torch their own places when things go bad.
Login
Register
FAQ
Search
