Just when I thought things had about settled down, our automobile insurance renewal and billing paperwork arrived in the mail. Considering we both have clean driving records, as well as a clean payment history (payments are automatically deducted from our checking account), insurance renewal is normally an unremarkable event.
Not this time!
Apparently, insurance companies have the privilege and desire to run a credit report, to determine qualification for their lowest rates. Huh? So, driving record and years of being a profit customer are no longer the criteria for the lowest rates?
Nope. Instead, they've come up with consumer credit based insurance scores.
Well, that shouldn't be a problem, because as I have blogged before, our credit union says we've got outstanding credit scores and credit worthiness (keeping in mind that this repeat blog topic is due to our past mistakes of buying on credit, instead of living within our means...which we are dedicated to improving immediately!)
Imagine my surprise to learn that our automobile insurance company has decided to raise our insurance premiums based on their new insurance scoring criteria. The first credit-related factor listed is the number and balance of credit card accounts. No surprise there....that is the mistake that keeps on giving to us lately! We have more credit card debt than we should. We know that, and have been working hard to remedy that fact for the last few months.....but not fast enough to avoid every business source from exploiting that fact for their own financial gain--raised interest rates, raised monthly payments, and now raised insurance premiums.
It's the 2nd credit-related factor listed that shocks me....
We do not have a gasoline credit card.....so our automobile insurance company has decided that we no longer qualify for their lowest rates. Unbelievable.
Not this time!
Apparently, insurance companies have the privilege and desire to run a credit report, to determine qualification for their lowest rates. Huh? So, driving record and years of being a profit customer are no longer the criteria for the lowest rates?
Nope. Instead, they've come up with consumer credit based insurance scores.
Well, that shouldn't be a problem, because as I have blogged before, our credit union says we've got outstanding credit scores and credit worthiness (keeping in mind that this repeat blog topic is due to our past mistakes of buying on credit, instead of living within our means...which we are dedicated to improving immediately!)
Imagine my surprise to learn that our automobile insurance company has decided to raise our insurance premiums based on their new insurance scoring criteria. The first credit-related factor listed is the number and balance of credit card accounts. No surprise there....that is the mistake that keeps on giving to us lately! We have more credit card debt than we should. We know that, and have been working hard to remedy that fact for the last few months.....but not fast enough to avoid every business source from exploiting that fact for their own financial gain--raised interest rates, raised monthly payments, and now raised insurance premiums.
It's the 2nd credit-related factor listed that shocks me....
LACK OF REPORTED INFORMATION ON OIL COMPANY ACCOUNTS
There are no oil company accounts on our file! We do not have any gasoline-themed credit cards, and our automobile insurance company has decided this is a problem! Are you kidding me? First they say we have too many credit cards, and then they say we don't have enough gasoline credit cards? Seriously?We do not have a gasoline credit card.....so our automobile insurance company has decided that we no longer qualify for their lowest rates. Unbelievable.
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