05-15-2007, 11:37 PM
[quote AlphaDog][quote Jack D.]OK. I'm confused. What does my credit score have to do with my driving record? If I don't pay the phone bill this will make me go on a rampage or something??? I hate insurance co's as a rule of thumb and as a MA resident I already give them MORE than my fair share as it is.
The way it was explained to me, they view the credit score as a part of their assessment of "reliability" and "responsibility". Apparently they got the notion that people who have higher credit scores are generally more responsible and, ergo, less likely to get involved in an accident or have poor driving records. When you think about it objectively, there is some merit to the argument; however, like too many other things, there are always many very responsible people who have, for one reason or another, a less than stellar credit rating but who are very good and responsible drivers.
It's just another one of those examples of how one model is applied to everyone, with little or no accounting for individual variables.
Overall, the method has been very successful. The first compared the two groups and found a significant overlap. Overall, my rates have gone down since they started doing this. Even if I didn't qualify for the biggest discount, it's still more of a discount than I was getting before.
This isn't like the Advantage/Express/Value/Savings... Cards at grocery stores where they charge you extra if you don't use their card.
The way it was explained to me, they view the credit score as a part of their assessment of "reliability" and "responsibility". Apparently they got the notion that people who have higher credit scores are generally more responsible and, ergo, less likely to get involved in an accident or have poor driving records. When you think about it objectively, there is some merit to the argument; however, like too many other things, there are always many very responsible people who have, for one reason or another, a less than stellar credit rating but who are very good and responsible drivers.
It's just another one of those examples of how one model is applied to everyone, with little or no accounting for individual variables.
Overall, the method has been very successful. The first compared the two groups and found a significant overlap. Overall, my rates have gone down since they started doing this. Even if I didn't qualify for the biggest discount, it's still more of a discount than I was getting before.
This isn't like the Advantage/Express/Value/Savings... Cards at grocery stores where they charge you extra if you don't use their card.