FICO and Insurance

[LivingAlmostLarge]

Wild, I was shopping for new auto and home insurance recently. And the brokers asked to run credit checks. I was suspicious and was told that it will affect my homeowners premium and the auto insurance wouldn't be issued without validating the credit check. Weird.

Is this now standard and typical behavior? Not a huge deal, I have great credit but I was just suspicious.

[vsjhoc]

Yes, your credit score is creeping into more parts of your life.

The actuaries say they found a correlation between people with low credit scores and people with a high number of insurance claims.

That doesn't mean that having bad credit makes you more likely to have a lot of accidents. But they claim there is a statistically significant link, so they can use your credit as an excuse to bill you higher premiums.

[sweeps]

Exactly why Dave Ramsey is wrong when he says your FICO is not important.

[CreditExpert]

yea, that is a new procedure now. As vsjhoc said the insurance companies did find a correlation between bad credit and insurance claims. One of those strange but true facts.