Ch7 and just now got cancelled on insurance..

[mark1210]

What is the name of your state? TX

So I had my 341 last week and received a notice in today's mail my insurance is being cancelled "due to high risk". Is that legal? I have called around and based on my credit and recent bankruptcy no one will insure me! How am I supposed to insure my home and car? If anyone does insure me I bet the rates are through the nose. Why does a credit score relate to getting insurance the two shouldn't be related.

 

[Who's Liable?]

What is the name of your state? TX

So I had my 341 last week and received a notice in today's mail my insurance is being cancelled "due to high risk". Is that legal? I have called around and based on my credit and recent bankruptcy no one will insure me! How am I supposed to insure my home and car? If anyone does insure me I bet the rates are through the nose. Why does a credit score relate to getting insurance the two shouldn't be related.

Actually, they are related... People with poor credit scores tend to have a higher propensity to file claims and get in accidents...

 

[blusafire]

(FL) Bk7 discharged 4/7/05..switched (6/05) auto insurance from AIG to Esurance saved $300.00!!! I was nervous doing it online when the note about checking credit came up..but I decided to try anyway...I was surprised when I saved that much money. Go to Esurance.com and give it a try. I don't what to say about homeowners, we have Allstate and the renewal came up during the BK process and rates did not change. Good Luck!

 

[mark1210]

Thanks for the info and tip guys =)

 

[bigun]

The bk forum at www.creditboards.com has a list of bk friendly creditors and there are some insurance companies listed. It's in the pinned section at the top of the page.

 

[sadsam]

"Actually, they are related... People with poor credit scores tend to have a higher propensity to file claims and get in accidents..."


actually you would think once someone filed bankruptcy and walked away from their debt load they would be less likely to set fire to their house to collect the insurance money or kill their spouse to collect the life insurance!

in my case I had a 749 fico score until I got sick and declared bankruptcy. I also have a perfect driving record. I've never had a speeding ticket or accident.

 

[Ladynred]

Actually, they are related... People with poor credit scores tend to have a higher propensity to file claims and get in accidents

That's just a CROCK ! People who wind up with bad credit or file bankruptcy don't automatically become morons behind the wheel. This credit=Insurance garbage is being challenged all over the US and a few states have passed laws to PREVENT insurance companies from using credit for insurance purposes. Hopefully more will follow suit.

I've been driving for 32 years.. and had 2 accidents; 1 when I was 18 when I was driving across a bridge in a snowstorm in bad traffic, slid into a guy doing maybe 20 MPH (if that) and my car never got above 2nd gear (standard tranny); and the 2nd about 12 years ago when some moron rear-ended me while I was sitting still waiting for a guy to pull into his driveway. My driving record is damn good, but my credit is now rotten. I have not started to be carless behind the wheel because my credit's in the crapper ! On the contrary, I'm MORE CAREFUL because I simply can't afford to have anything happen to my only car !!

You're just going to have to shop around a bit more, and yes, your rate may be higher.

 

[Who's Liable?]

I still stand by my inital post...


Washington Post Staff Writer

"Property insurers across the country have concluded that people with poor credit histories are more likely to have auto accidents and incur damage to their houses. The companies can't really explain why there should be such a correlation, but they say statistics show there is one."

"The scores, which insurers say could indicate a lack of personal responsibility..."

"A credit score "has predictive value,""

"Beginning this month, Allstate Insurance Co. is refusing to write new homeowners policies in Texas for applicants who are not in the top two tiers of its five-tier rating system based on credit scores."

and from another post:

"The insurance companies have deduced that people with poor credit are also more careless with their finances, they are more likley to have an accident, file claims, inflate claims, commit fraud and commit arson. If you are more meticulous and responsible about paying your bills, you will also be careful with your driving and have lower expected losses. "

 

[Ladynred]

I'm sorry, but some statistician, PAID by the insurance companies, puts together a bunch of numbers and its now GOSPEL that all people with bad credit are stupid behind the wheel ??

Sorry, I don't buy it and I never will. MY driving record has NOTHING to do with my credit and DRIVING RECORD is ALL that should count, not whether or not I paid Sears on time !!

 

[tmr76]

I am 100% in agreement with Ladynred. Luckily, I signed on with my insurance co before they started using credit scores, at least they tell me they are not used in determining my (ridiculously high) rates despite them doing a random check on my credit which I found out while preparing for my BK.

I have to disagree with the personality responsibility statement. The only reason we had to file was because of a lawsuit on an old repo that they decided to try and cash in on before the SOL ran out next year. I couldn't come up with $10+ to pay them so we had no choice. In that I included a few older debts that the creditors had been harassing me over at work as well as not working with me on the interest rate and late fees.... Otherwise, I'd still be making my monthly payments as usual going nowhere on the balance.

So no, it was not a lack of personal responsibility on my part that I lost jobs twice, my husband was laid off for the better part of 5 years and the work he did get didn't pay the bills.... That's life, not a lack of personal responsibility. You can't squeeze blood from a turnip.

I have to say reading this makes me worry whether or not we will have any problems - may I ask what insurance company you were cancelled from?