Credit check for car insurance

[dmppc]

Can anyone explain to me the reason my insurance company would want a credit check to give me a small discount on my car insurance. I have been with this company for more than 30 years. I have discounts for having my house with them as well. Claim free and have 3 vehicles with them. I do not understand why or what an insurance company would need this information for

[Father of five]

I heard of this for new young drivers who pay their insurance monthly but never heard or it happening to older established customers

[elkslayer132]

Must be AMA i was asked for this info too.

[dmppc]

Yup AMA

[cowmanbob]

Our farm insurance provider asked for this also, I said sure as long as it's not sold or traded. They never brought up the subject again.

[JustBen]

Good credit = less risk of fraudulent claims, therefore savings.

Bad credit = higher premiums.

[Bigbuckwsm]

Wawanesa just asked me about this for a possible discount for our house insurance, they don’t offer it yet for vehicles though.

[omega50]

Originally Posted by dmppc

Can anyone explain to me the reason my insurance company would want a credit check to give me a small discount on my car insurance. I have been with this company for more than 30 years. I have discounts for having my house with them as well. Claim free and have 3 vehicles with them. I do not understand why or what an insurance company would need this information for

Excellent question to ask the manager at AMA.

I might frame the question something like.

Please explain to me exactly why you would require a credit check for a small discount on my vehicle insurance from a loyal customer with a stellar record of over 30 years of claims free history insuring across multiple lines?
Is there a specific reason that you are going to such great lengths to encourage me to change insurers?

I would also draft it as a letter and direct it to as many managers up the chain of command as possible until you get some satisfaction

[Positrac]

Screw AMA. They were by far the worst insurance company to deal with during the Fort McMurray fire in 2016. Stories abound of what they put their customers through. We were with them at the time but were lucky our home was untouched. I know more than one family that is still fighting with them though. As a result we swapped coverage last year to RBC. Better coverage and it came in cheaper too.

[Austin]

Credit checks go onto your credit bureau and reduce your credit score = thus impacting your ability to apply for credit, loans, leases, mortgages etc.

i would confirm this with them in writing and check it pre and post

[bobtodrick]

Originally Posted by Austin

Credit checks go onto your credit bureau and reduce your credit score = thus impacting your ability to apply for credit, loans, leases, mortgages etc.

i would confirm this with them in writing and check it pre and post

In this case it doesn't https://www.creditkarma.com/advice/i...dit-inquiries/

[Twisted Canuck]

Originally Posted by Bigbuckwsm

Wawanesa just asked me about this for a possible discount for our house insurance, they don’t offer it yet for vehicles though.

They just started doing this apparently, and I was quite pleased to see over $300 knocked off my premium for my home. Don't know if it will affect my auto. By all means, check my score!

[calgarygringo]

I am in the business and yes it is true.

They "say" that supposedly a person with a better credit rating is generally a better driver.

Also so you know, several of the big boys now especially with new customers will not give you monthly payments any longer if you don't pass the credit score test. You will need to pay up front for 3 years before giving you monthly payments.

Stay tuned as every week we seem to get new ideas from the insurance companies of how they are changing their rules. Its making for some fun times for the Brokers having to try to explain all these changes to customers.
Don't be surprised if your broker calls and gives you the 100 questions of what they need to know about you. Many clients files are way out of date and they want everyone to be current with all your info and will ask you everything except the color of your undies.