Credit Report Use
Large insurers routinely use information in credit reports to decide whether to grant a policy, renew one or offer a preferred rate. In some states as many as half of all decisions regarding home and auto insurance may include credit history as a factor. The companies maintain that the credit information helps them spot insurance risks - but there is little evidence to support that point of view.
If you have been denied insurance and appeals to the company have been unsuccessful, ask the company to put the reason for the denial in writing. If you believe your insurer used your credit history incorrectly or unfairly, complain to the state insurance department.
Be sure your credit reports are up to date and accurate. Check with the three major credit reporting agencies at least once a year. Experian can be reached at 1-800-682-7654; Equifax at 1-200-216-1035 or 1-800-378-2732 and Trans Union is 1-800-916-8800. Each of the 3 credit bureaus charges an $8 fee .
Resource: Consumer Reports Feb. 1997
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