Insurance — Screwing the Public Once Again

I found out today that it is again legal for auto insurance companies to use your credit score as part of their rating process. They seem to believe that if your credit score is low, you have a higher chance of getting into an accident, speeding, or otherwise needing to file a claim.

B-U-L-L-S-H-I-T

Plain and simple.

For various reasons, I’ve had a little more than my share of bad luck in the credit department. Yet, I haven’t had a moving violation or any auto insurance claim in over 6 years. In other words, my driving record is clean. I haven’t had any serious claims in close to 20 years, although I have had a ticket or two. Since auto insurance is about driving, and not spending, why should it matter what my credit score is?

I’ll tell you why.

Because the insurance industry lobby is more important to our elected officials than the citizens who elected them.

So, write your delegates, your congressmen (or women), the governor and the insurance commission. Let them know that this activity is bogus, and that you’re as unhappy about it as I am.

Here’s the address of the Maryland Insurance Administration:

Insurance Administration
525 St. Paul Place
Baltimore, MD 21202-2272

I’ll leave it up to you to find the address for representatives and lawmakers in your jurisdiction.

And, here’s an interesting article on the subject: http://www.smartmoney.com/consumer/index.cfm?story=20010820