CONSUMER ALERT Tips to Stop Auto Insurance Rate Increases Due to Employment Losses & Credit Limit Restrictions
Unearned and unfair increased auto insurance premiums loom for millions of Americans because their credit scores have precipitously fallen during this economic crisis through no fault of their own. Consumers can learn and take action to prevent these increases before they hit.
Economic misfortunes suffered by millions of citizens will translate into unearned windfall profits for auto insurers, since they are allowed to consider the financial stability of insureds when setting their rates.
The recent credit squeeze and the losses in the employment numbers are both very good news for auto insurance carriers. Why? Because these two factors alone will drastically lower credit scores around the nation, and when your credit score goes down, your auto insurance premiums go up. Most of the insurance industry uses an "insurance score" which is based in largest part upon the way in which consumers handle their credit—including some version of their credit score.
Consumers who have suffered a sharp decline in their credit score through no fault of their own need to learn about the credit scoring topic and to TAKE ACTION NOW in order to prevent any rate increase in the future.
SettlementCentral.Com presents the following directory of information, guidance and form letters to aid those who face increased insurance rates through no fault of their own.
TOPIC ONE: Employment Losses & Credit Restrictions Cause Auto Insurance Rate Increases: What YOU Should do About It
1. Auto Insurance Companies Benefit by Economic Misfortunes of Innocent Drivers
2. Drivers Get Lower Credit Scores by Not Paying Bills on Time: Insurance Score
3. How Reductions in Credit Card Limits Decrease Your Credit Score
4. What CAN one do if Your Credit Score Plunged and You Wish to Avoid an Increase in Your Auto Insurance Rates?
Credit Scoring Auto Insurance Premiums & Helpful Resources
ACTION PAGE: Sample Letters to Insurer, to State Insurance Commissioner & to State Legislative Delegation
Resources to Investigate & Correct Your Own Credit Scoring Files
SettlementCentral.Com Letter to National Association of Insurance Commissioners re: Credit Scoring
TOPIC TWO: Credit Scoring Auto Insurance Premiums & Helpful Resources
1. Introduction to Use of Credit Scoring for insurance availability and pricing
2. What is a "credit score" and "FICO score"? Who are TransUnion, Experian and Equifax and ChoicePoint—and how do they differ? Who is "Fair Isaac" and is he really "fair"?
3. FICO INSURANCE SCORE MODEL: What is in an insurance score?
4.ChoicePoint Factors Used to Create Insurance Scores
5. Background Reading and Resources: Learn About Credit Squeeze & Insurance Rates
TOPIC THREE: ACTION PAGE: Sample Letters to Insurer, to State Insurance Commissioner & to State Legislative Delegation
1. Reasons to Demand Exemption NOW, & Follow-up With Insurance Commissioner and State Legislative Delegation
2. Gathering Facts to Support Your Argument
3. Here is some framework upon which citizens could construct letters to their state officials
4. Three Sample Letters to Insurance Company and Insurance Commissioner
TOPIC FOUR: Resources to Investigate & Correct Your Own Credit Scoring Files
1. LEARN AND CORRECT—if possible—THE INFORMATION STORED ABOUT YOU
2. General Credit Resource Links and Contact Information
3. Here is part of a long-range strategy to improve one's credit score
TOPIC FIVE: SettlementCentral.Com Letter to National Association of Insurance Commissioners re: Credit Scoring
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