beware "credit-based" insurance

 Progressive Insurance Company raised my motorcycle insurance rates, sending
me a notice of "Adverse Action," because there had been two credit inquiries
on my credit report within the past 2 years.  They said that credit
inquiries "correlates" with higher risk for claims.

I have an almost-perfect credit score over 800, and a perfect driving
record--over 40 years' driving only a couple of parking tickets.  This is a
major scam I'm sure.

Check your motorcycle policy to be sure they aren't penalizing you for
having opened a Sears MasterCard and/or taking a loan to buy a motorcycle
within the past 2 years or so, as was the "crime" I committed!

 
:Progressive Insurance Company raised my motorcycle insurance rates, sending
:me a notice of "Adverse Action," because there had been two credit inquiries
:on my credit report within the past 2 years.  They said that credit
:inquiries "correlates" with higher risk for claims.
:
:I have an almost-perfect credit score over 800, and a perfect driving
:record--over 40 years' driving only a couple of parking tickets.  This is a
:major scam I'm sure.
:
:Check your motorcycle policy to be sure they aren't penalizing you for
:having opened a Sears MasterCard and/or taking a loan to buy a motorcycle
:within the past 2 years or so, as was the "crime" I committed!
:

I posted this a few weeks ago. Just call them up and they will drop
your rate. The main factor in raising your risk factor may be that
the credit reporting agency doesn't report any credit before the age
of 30. Since the agencies only report 20 years of credit history,
everybody over the age of 50 is in that boat. If you don't call
them, they take an extra $50. If you do, they put the rate back
where it belongs.

This is definitely a rip-off by Progressive.
--

 Steve T wrote:

Credit reporting agencies have no such "don't report under the age of
30" rule and never have.  Also, the agencies do not report "20 years" of
credit history.

- Active tradelines stay on your report for as long as they are active.
- When a tradeline becomes inactive, it stays on your report for 7 years
from the last reporting date.
- Bankruptcies stay on your report for 10 years.
- Hard inquiries stay on your report for 2 years, but only the previous
6 months is used in calculating a credit score.  Anything under 3-5
inquiries will have minimal-to-no impact on your score.
- Soft inquiries only show up when YOU request a copy of your credit
report.  Self-inquiries do not show up to any lenders and do not affect
your credit score.

 
:Credit reporting agencies have no such "don't report under the age of
:30" rule and never have.  Also, the agencies do not report "20 years" of
:credit history.

My progressive bill came through with a drop in rating because of
two credit factors:

1. I only have two credit instances going on (2 credit cards). Since
I have no loans of any kind and have no balances on the credit
cards, I fall well below the average.

2. No credit history before the age of 30. I had credit, but I no
longer maintain any of those accounts so they are no longer
reported.

What the Progressive guy told me was that the agency wasn't
reporting any of my credit history before the age of 30... Not
because they don't report that stuff, but because it so long ago. It
seems to me that pretty much everybody over 50 should be in that
boat.

The guy asked me when I first got credit. I told him a Sears card in
1970 and he said OK and dropped my rate.

He could have been lying, but it sounded logical.
--

 wrote:


Uh, why listen to an insurance salesman about your credit score?? All
they know is what other salespeople tell them.