Auto insurers use the policyholder’s record for paying household bills in setting rates. This process is called credit scoring which is arbitrary one and is prohibited by Michigan Company.
In 1996 the credit scoring becomes legal in the state under false pretenses. This is characterized by discount prices which are generally used for rewarding claim costs, like the passenger side airbags, anti-lock brakes etc. This credit score will not affect the amount of premiums collected by insurance companies. This affects the premiums collected from factors unrelated to driving.
In 1996 the credit scoring becomes legal in the state under false pretenses. This is characterized by discount prices which are generally used for rewarding claim costs, like the passenger side airbags, anti-lock brakes etc. This credit score will not affect the amount of premiums collected by insurance companies. This affects the premiums collected from factors unrelated to driving.
The insurers assert that the credit scoring accurately predicts who is likely to have a claim. A state investigation reveals that 30% of the information in one’s credit report is inaccurate and can score a total of 40 points which would be reported. The workers who are laid off often get behind the wheels with looking for a new job, causing their credit scores to fall with rise in premiums.
The most uncharitable characterization is that of credit scoring which allows you to exploit the less off consumers who are in favor of those with higher incomes for their pockets. But many states are increasingly fighting back to restrict the credit score.
These reforms include a low cost auto insurance policy for the working poor, requiring prior approval for auto insurance company putting an end to unfair practice of credit score.
The most uncharitable characterization is that of credit scoring which allows you to exploit the less off consumers who are in favor of those with higher incomes for their pockets. But many states are increasingly fighting back to restrict the credit score.
These reforms include a low cost auto insurance policy for the working poor, requiring prior approval for auto insurance company putting an end to unfair practice of credit score.
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