Monday, February 2, 2009

Should Insurance Companies Use Credit History for Rates?

Posted by Kaitlin Lanier

If you're in an accident or get a speeding ticket, your car insurance may go up. But did you know - whether you've paid your bills on time can also raise your rates? In Kansas, your insurance company can use your credit history to determine how much you'll pay.

P.J. and Ralph Stoneberger found that out the hard way. The Enterprise, Kansas, couple insures their home, a rental house, a farm and some vehicles. They were shocked with their total insurance bill jumped nearly $2000. Their insurance company recently started using their credit history to determine rates.

Click here to read more.

1 comment:

  1. This clause is really bad as it will restrict so many people of having the benefit of insurance policy. In my opinion they should not consider as who wants to buy a policy will pay them the whole amount. Whats the need to check the credit history ?