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Your Credit Report May Increase Your Insurance Premiums

10/27/2006, 8:37 pm

If there’s a way for insurance companies move money from your pocket and put it in theirs, the insurance company will find it. ConsumersUnion.org (the nonprofit publisher of Consumer Reports) makes some surprising details plain on their web site at: http://www.consumersunion.org/yourwallet/

In short, it’s legal for an insurance company to use information from your credit report to determine your insurance premiums. Why is this a problem? Because your insurance costs should be related to insurance claims and risk … NOT to whether a monthly payment on your gas card is late.

Learn more about the ways insurance companies are increasing premiums for reasons unrelated to insured risks by visiting the ConsumersUnion.org site. If you’re inclined, the site makes it easy to contact your politician to tell him or her you don’t want credit-based information used to determine your insurance premiums.

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