Posts tagged score

Question by gregwhatshisname:
Why would my credit score have any bearing on my annual premiums for automobile or home insurance?
Recently, I had a homeowners policy with on the web insurer ESURANCE. I was under the impression that my homeowners policy would automatically renew. No. You have to call ESURANCE and tell them you want to renew or they cancel you. After I was cancelled I called up to reopen my old account. No can do. So we opened a new account. My annual premium went from $ 468 to over $ 1400! I have never filed any claims or changed anything at my house. However, like many Americans, I have been laid off and bill payments have piled up. It’s fair to state my credit score has dropped. But a 300% markup? I called other insurers; Allstate, Nationwide, Say Farm; they were all close to $ 1000 annually! How can insurance companies get away with this? What do they think, if I am slow at paying my bills my home might burn down?

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