Credit scoring in insurance is a very controversial and often discussed topic. Insurance companies maintain there is a direct correlation between a persons credit score and the propensity for future insurance claims. Consumer advocate groups argue against this point of view stating that credit scoring unfairly impacts low income and minority consumers, unfairly penalizes people with temporary financial difficulties and those with major medical bills. Regulators are in the process of reviewing this practice again to determine whether or not this practice is being used fairly, if it will be allowed to continue and if so in what form.
Whatever your take on this subject, one thing is for sure, your credit score has a major impact on the premium you pay for your insurance. It is not uncommon to see a premium double or even more than double for someone that has had serious credit problems versus someone with an excellent credit history.
In today’s times, more and more people are have varied levels of credit difficulties and as a result are being impacted by this practice. It can make it tough to afford the coverage you want and need.
Fortunately, here at VGW Insurance, we have a couple of excellent insurance companies that offer outstanding coverage and do not use credit scoring to determine pricing or eligibility. Therefore, someone with a lower credit score can still get very competitive rates on their insurance. The majority of the companies we represent do still use credit scoring and offer outstanding pricing to those with high credit scores. We have multiple options available to assist each individual based on their needs.
Tell us what you think about this controversial subject.
