Credit-based insurance under review

A group of Canadian insurance regulators is seeking public feedback about a controversial insurance practice that uses someone's credit score to determine their premium..

...Credit-based insurance uses a person’s credit score — alongside other information — to help determine rates. Supporters of the practice argue that low credit scores mean higher risk.

...According to insurance companies’ actuarial data, people with below-average scores are more likely to file a claim.

CBC - Credit-based insurance under review


I'm curious...what type of feedback are they expecting?

This isn't about your ability to pay your premiums each month; this is a deciding factor as to what your premium is going to be. If you have bad credit your insurance will be higher than someone with good credit on exactly the same item.

The statement about the probability of filing a claim echos what I have heard friends say about minor fender-benders in thier vehicles...it's cheaper in the long run to pay out of pocket then to use thier insurance.

This is insane...it will also spread like a wildfire if companies can get away with it.

Keep a close eye on this idea, I promise you...this is going to happen everywhere. I've said many times that nations take turns being the bad guy; looks like it's Canada's turn again and this is what we drew.

There are so many reasons why this has to be stopped it's not even funny. Given how much debt people are carrying (on average 146% of income per 4 person family in Canada) I see this as a way for companies to ensure that people will continue slaving away. Start missing payments on one aspect of your 'life' and everything gets more expensive.

I can see what this will lead to if the door gets wedged open...

I'm sorry sir, you defaulted on your student loan; this bag of chips is going to cost YOU $22.

reply to post by [davinci]


This is one thing I hate about car insurance. It's been like that in the good 'ol USA for some time

reply to post by [davinci]


INSANE! While the person above me stated it's like that in the US, I don't have credit based insurance in the state I live in. I was un-aware it was in existence in the US at all. Sure seems like they are weeding out the poor and sick at an increasingly quick pace. I never really believed in NWO... I am slowly starting to believe it exists...

just maintaining the good ole power structure now we can't have the poor people saving money and getting ahead to live in the same neighborhood as us and go to our gyms and mingle with our women now would we ?this is just common sense .....
people of the world do not fear things WILL change i promise you
the fighters for humanity are hard at work to put the uppercrust behind bars where they belong

Yes, but are the people with bad credit actually costing them more money in the long run? More claims does not automatically equal more money being paid out.

reply to post by [davinci]


This is a very interesting topic, and thanks for having the gumption to bring this to our attention.
I have to admit that I am overly tired right now, and am in no position to respond with the rightful
objective point of view and commentary you , and your efforts deserve.

Regardless, Star and Flag to your post,,, I wil return

Thank God for ATS Intelligence, and inquisitive members such as yourself.

Best Regards,

reply to post by gnosticquasar


Exactly.

I'd like to see the evidence that is being quoted here. How they can equate poor credit with increased claims seems a little dodgy...like a very thinly veiled attempt to suggest dishonesty.

I think the push to have a person's credit rating be the end-all-be-all metric for determining what type of person they are is little more than the tightening of the shackles. I'm not trying to be dramatic, but look at the situation that many find themselves in...the financial crisis hasn't affected the rich like it has the rest.

Now considering that many banks are also in the insurance business, I find it disgusting that those who created this fiasco now want measures that will further impact the people who are paying the price.

I'd say it's a double-whammy, but we past that mark a long time ago.

The reality is that this will be a no lose situation for everyone involved except the general consumer.

I'm sure the insurance companies will be allowed to institute this across the board because it increases their profits, and in the case that a persons credit rating actually pushes them out of the ability to pay for insurance, the local government will benefit by constantly and consistently having them ticketed for not having mandatory insurance, so at minimum they will pay a fine and get 30-90 days to purchase new insurance.

Knowing full well that they can't purchase insurance because of their credit, that persons license plate number will simply become part of the rotation for their local PD, and that person will have to pay that fine every 90 to 120 days.

The milking cycle will be complete. People will be forced into situations where they are either constantly paying massively increased premiums, or paying the local court a string of fines.
All the while, people who start life with more resources, will have better credit and enjoy more aspects of life than those who do not.

It's exactly as it should be. Work and tax the Plebs to death, to ensure that the actual people of value can live an enhanced and beautiful life.
It works everywhere in the rest of the world.

All we need now is to ensure that a persons individual credit is tied to the credit history of their Parents and Grandparents and so on. As long as part of your credit score is controlled by your family history credit score, then there will even be a method for stomping out those "self made" people who actually work hard to rise above their humble origins. God knows their are too many of them already.