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Car Insurance - Credit Scoring

Does anyone know of an insurance company that does NOT use credit scoring in their rate calculations? Specifically, I’m looking for a company that can offer insurance in Michigan.

Even among the companies that do use it, your credit score is a pretty minor factor in their rate calculation. You’re probably best off getting quotes from different companies and not fretting about how they arrive at them. After all, even if there are companies that don’t use your credit rating, their rates may still be higher even after you get dinged for it somewhere else.

I agree with Greasy. Get several quotes and go with the best combination of rates and service. I don’t know if GEICO is an option for you, but they have been very good to me over the past 40 years. My record is not perfect, yet they continue to keep me and provide outstanding service when required. They aren’t the only good insurer out there, but they are one that I;ve had exceptionally good success with.

I don’t know if this company operates in your state, but this morning I saw a TV commercial for the CURE insurance company, and it stated that they do not use credit scores when issuing policies. This might be a company to check into.

Rather than find a company that doesn’t consider your credit score, I think you are better off simply shopping around for the best price. Isn’t the bottom line more important?

I have recently discovered that there is an advantage to sticking with one insurance company for the long term. My auto and motorcycle insurance policies are with Allstate and I want to get away from them because of how they screwed the Katrina victims and because they are butting heads with my state government over home insurance rates. Yet nobody can compete with the rates they charge me. Over the years they have lowered my deductibles and my rates to a point where nobody else can compete. Even when I get quotes with the deductible that I started with (before Allstate lowered it), other companies can’t compete. So shop around for the best rate and stick with that company for the long term. It should pay off.

I don’t rate companies on how cheap they are…I place a much higher value on how well they will pay off a claim. I was SCREWED by Travelers ins years ago. Stopped doing business with them the next day. Allstate tried to screw me…and I dropped them too. Insurance company A may have a lower price…but if they screw you when making a claim you lost any savings (and more) you made by the lower premiums.

Depends on how many claims you make over a (driving) lifetime. Its better to view insurance as protection against liability then vehicle itself. Once a vehicle hits a few years old its value drops off pretty well and I pay cash for cars.

I don’t have lots of confidence in my insurer(Progressive) however I pay $250-$500/year lower than competitive quotes for same coverage. Not a single claim against in my last 10 years of driving so I am well ahead.

I don’t rate companies solely on price either. However, I don’t have an issue with how Allstate has handled my claims. Nor did I have any customer service issues with my last provider. If I did, I would switch in a heartbeat. If, however, I don’t have any problem with how claims are handled, I can compare apples to apples by looking at equivalent policies and find the best price.

Based on my experience, insurance companies have come to realize the value of good customer service. I have never had an issue with how any insurance company has handled one of my claims. Until I get screwed, as you have, I will simply compare prices. As long as Allstate and my local representative continue to treat me right, I am not going to rush out to pay more.

Even the big companies like Allstate and State Farm use local insurance agents to sell their policies and manage customer service. It would be unwise to base a decision on a carrier on the negative experiences of someone else. It is quite likely that their experiences won’t be the same as yours.

This may be true for comprehensive and collision, but for the state-mandated minimum liability coverage, cost really is pretty much the only factor. Having X amount of coverage is all that’s important for not getting a ticket or getting sued. It would be nice if your company doesn’t make a stink about paying out claims, but even if the other person or their insurance company has to pull teeth to get them to pay out, you’re still personally covered.

I talked to the people over at and they said it depends on the company but its never a huge factor unless they consider you a huge liability. That being said if you have really bad credit then it might be difficult to get them to cover an expensive car without higher than normal premiums. It doesn’t mean you can’t get coverage but it may mean it won’t be as cheap as you hoped.