Homeowners insurance rates

[JDgreen227]

My homeowners insurance policy recently came up for renewal, and here in Michigan insurance companies are permitted to use credit scoring to determine rates. The higher your credit score, the higher the discount you can get on your policy. Comparing the information about credit scores and applicable discounts between my older policy and the renewal, I noticed something:

In the past: Credit score range of 695-725-- 40% discount, but my renewal policy now has a range of Credit score range of 695-725-- 35% discount, and so on across the score ranges. And while formerly the maximum discount was given to a policy holder with a credit score of 850, now that range is 850-997 !!!!

So it appears that although my credit score has increased recently, my insurance company has chosen to juggle the ranges enough so they are actually raising my premiums 5%. I talked with my brother and a friend, and they both had the same experience with different insurance companies. So this is how the policy holders not directly affected by Hurricane Sandy are going to help pay for the losses?

BTW, how many of you guys have a credit score of 997....:laughing:

 

[Yandaddy1110]

Last spring, my homeowners insurance renewal came due and to my surprise, about 1k a year changed to 2k a year. I was furious. Called around to other insurance providers and found out, my new rate was low, others couldnt match it. The first thing they ask on the phone is "what is your zip code".

 

[daugen]

a credit score of 850, now that range is 850-997 !!!!

I thought the upper limit was 870. Anybody get higher than that? I did it once, no longer after I took out the Kubota loan.
Very hard to understand system and not always used to the consumers advantage for sure.

I started out my career as an insurance underwriter. I understand that statistically there is some validity to credit pricing.
But I think it is a very bad way of doing business.

 

[2LaneCruzer]

Last spring, my homeowners insurance renewal came due and to my surprise, about 1k a year changed to 2k a year. I was furious. Called around to other insurance providers and found out, my new rate was low, others couldnt match it. The first thing they ask on the phone is "what is your zip code".

Some insurance companies have taken some big hits lately; and one national company is in serious trouble. Look for rates to go up some; depending on the state, and for some folks to be dropped. I recently got a letter from my insurance company of 40 years threatening to discontinue my coverage if I didn't trim my trees and fix some loose shingles. I went to a local independent agent, who wrote me up with new policies that increased my coverage significantly, and saves me about $700 a year.

 

[JerryK]

If you are in the Michigan area, try Auto Owners Insurance... a local Michigan company [ Lansing..?? ] that does not write policies on the East or Gulf coast areas....

 

[murphy1244]

I thought 850 was a perfect score.

 

[daugen]

I thought 850 was a perfect score.

So did I when I amazed myself when I bought my Suburban end of last year. 870. Said I was "better" than 100%
of the population. Huh?

 

[unbidden]

BTW, how many of you guys have a credit score of 997....

Different reporting agencies use different methods of calculation. My 'guess' is an insurance company will use which ever agency gives the more beneficial report on 'their' end and not the report that would be better to your advantage. Even a good agent is at times handcuffed by the company he/she has to underwrite for.

Cynical, yes.... have insurance companies given us any reason to believe otherwise?

 

[unbidden]

Found this at: https://help.equifax.com/app/answers/detail/a_id/21/related/1

Different Credit Scores
Why are there different credit scores?
Businesses utilize different scoring systems based on the system they believe best fits their needs. That means the various lenders you do business with could use different scoring systems which may mean that the respective scores may not be identical. However, keep in mind that if you have a good score from one scoring system you are likely to have a good score with other scoring systems.

Know that the scoring ranges will vary across scoring systems and could range from 280 up to 850. On average, most scores fall within the 600s and 700s.

Since there is no one universal score cutoff used by all lenders, it is hard to say what an acceptable score might be in the context of a particular lending decision. For example, a score of 750 may qualify you for a platinum credit card, whereas a score of 675 may indicate you are a better match for a standard card.

Based on the general population's scores, the ranges and percentages of scores are:

20% are above 780
20% are in the range of 745 - 780
20% are in the range of 690 - 745
20% are in the range of 620 - 690
20% are below 619

 

[JDgreen227]

If you are in the Michigan area, try Auto Owners Insurance... a local Michigan company [ Lansing..?? ] that does not write policies on the East or Gulf coast areas....

My brother who lives in Lansing has been with Auto Owners for 10 years, and they pulled the same rate hike on him by juggling around the credit score discounts same as mine. I was about 752 for many years, recently got a home equity loan to buy out my ex and the lender told me I was now at a score of over 820 but now that isn't high enough to give me the maximum discount when formerly it would have.