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Geeze freemkt think. They are less responsible and will do things that can increase the probability of having to file more claims.
I guess sometimes it has to be spelled out OR you are trying to prove a point where you can't.
HowTF do you jump to the conclusion that a lapsed policyholder is less responsible?
Go overseas for three months, not gonna drive, so you let your car insurance lapse. Where's the irresponsibility? You're certainly not going to file a claim when it's in your garage and you're not driving it.
HowTF are people responsible one day and irresponsible the next? Does that make sense?
My credit has been in the tank for the past ten years and I can't do anything about it. I've paid all my bills on time during the past ten years. HowTF does my low credit score indicate irresponsibility? Where is my elevated risk?
I'm not surprised. I'm with State Farm, and they were WAY lower than everyone else I shopped. We're paying less than $500 for a full coverage six month policy on a brand new crossover (or "sport wagon", as they call it).
State Farm was way lower than anyone else wanted to charge me, probably due to the low income discount they gave me plus I suspect they also gave more weight to my good driving record, as opposed to other insurers who wanted to ding me for things like income, occupation, and where I lived.
LOL, funny isn't it. The OP lives in a world they know nothing about. I guess the OP thinks they can do drugs, get into car accidents, not pay bills on time or default and expect to get the same respect as someone who is responsible. RESPECT is EARNED! by showing responsibility.
This will irk the OP. Someone with top notch credit score, someone who's signature good because they do what they promise to do is offered a better mortgage rate, a better rate for car insurance, some say preference from employers.
Would you lend money to someone who shows a history of defaulting on a promise to pay you back. A bad credit score can possibly mean you are irresponsible but if it is due to unforeseen circumstances you do have the "opportunity" to explain attach a letter of explanation to your credit report.
See how being a responsible person can help YOU?
This example is precisely about people who do not get into car accidents paying more than people who get into car accidents.
My credit tanked due to unforeseen circumstances (abrupt total loss of income, extended hospitalization, unable to work for over a year) and ten years later my credit is still in the tank although I've done everything I've agreed to do since. While I cannot do anything about my credit score currently (poverty level income allows me to pay current bills timely, but does not also allow repayment of pre-hospital debt), I can do something about the way I drive and that part is clean.
I know gay people who got married in order to take advantage of employer-paid health benefits. (He had a life-threatening illness, her government-employer insurance had no caps.) Did they magically become lower insurance risks (including car insurance) when they got married?
And attaching an explanation is pretty worthless. Scores rule and I have never heard of a credit decision being affected in the past 20 years by an attached explanation.
My experience suggests there may be a significant difference in risk profiles of those who mismanage money, relative to those who did not mismanage their money but had unforessen adverse circumstances. To insurers, they are all the same.
Or please explain how I was a low-risk driver (according to State Farm) for many years, but became highly irresponsible in a matter of months after my income disappeared...and then somehow continued to be irresponsible after I returned to work.
I'm an risk analysis examiner for the auto and health insurance industry.
I assure you that credit rating factors VERY highly into premium. To some degree it counts as a higher factor. And you're correct...Education and income aren't credit rating but there tends to be a correlation between low income individuals and a lower credit score which would account for higher rates.
Yes I am aware of that. But there is no indication in this example that unequal credit scores were involved. Looks like someone is assuming education and income are proxies for credit score.
Right but all you have to do is get their physical address (which they have to tell you by law) and send them a certified letter to never contact you again (there are examples all over the internet) and they cannot contact you again, by phone or mail or any other means.
I had to go through this after a relative passed, they were demanding money from the "estate" which was worthless. This was from years ago and from memory so the following info may not be enritely accurate, laws may also vary by state.
As I recall once they send the initial letter you want to send them a letter back requesting verification within 30 days, most of these companies are paying pennies on the dollar for the debt and will give up at that point unless it's a large debt. If they call tell them not to call back, that is all you should have to do. They get one call after that if for example they want to call to inform you of a lawsuit or other change.
If they verify the debt the letters can continue, if you don't request verification after initial letter they can also continue.
The trouble becomes is these debts get bounced from one company to another and the process starts all over again. They really need some reform here where at some point in time they either have to sue you or give up.
HowTF do you jump to the conclusion that a lapsed policyholder is less responsible?
Go overseas for three months, not gonna drive, so you let your car insurance lapse. Where's the irresponsibility? You're certainly not going to file a claim when it's in your garage and you're not driving it.
HowTF are people responsible one day and irresponsible the next? Does that make sense?
My credit has been in the tank for the past ten years and I can't do anything about it. I've paid all my bills on time during the past ten years. HowTF does my low credit score indicate irresponsibility? Where is my elevated risk?
Why didn't you make ONE PHONE CALL to your insurance company to get your insurance rate dropped to a "storage" rate while you were overseas? That's called "fiscally responsible behavior."
WTF are you babbling about now. Show me RIGHT NOW WHERE credit rating (or score) is mentioned. Education and income are not credit rating.
Rich people tend to live in safer areas and they garage their cars. This equates to lower vandalism, break-ins, and theft. It's a matter of geography and most people who use their heads understand this. Conversely, those who don't use their heads find themselves confused, angry, and ridiculously lash out at the rich.
I had to go through this after a relative passed, they were demanding money from the "estate" which was worthless. This was from years ago and from memory so the following info may not be enritely accurate, laws may also vary by state.
As I recall once they send the initial letter you want to send them a letter back requesting verification within 30 days, most of these companies are paying pennies on the dollar for the debt and will give up at that point unless it's a large debt. If they call tell them not to call back, that is all you should have to do. They get one call after that if for example they want to call to inform you of a lawsuit or other change.
If they verify the debt the letters can continue, if you don't request verification after initial letter they can also continue.
The trouble becomes is these debts get bounced from one company to another and the process starts all over again. They really need some reform here where at some point in time they either have to sue you or give up.
I am sure the laws on various forms of debt vary, as well as laws from state to state. However, I DO know this:
If a debt gets rebought - that doesn't start the entire debt over again. What starts the time periods (and therefore the timeframe in which particular debts such as credit card debts "expire") over again is if you make a payment. The payment to a new company that now "owns" the debt is considered agreement on your part that you owe THAT COMPANY the debt.
When a debt scavenger company buys a debt (or claims to have bought a debt) that you supposedly owe, DO NOT AGREE TO PAY THEM A PENNY. If you really believe that you owe the debt, contact the company that the original debt was with and see if they have indeed sold that debt - and then determine whether or not you believe you truly do owe it, or that the debt has not in fact "expired." For instance, in the state of Texas, credit card debt expires after four years of non payment. In other words, the credit card company has four years from a payment you make originally to collect the debt.
Here's what happened to me: A few years ago a scavenger debt company called me and told me that I had defaulted on a credit card amount of about $3000 ten years earlier. For starters, I had no idea what they were talking about. I think I would have REMEMBERED defaulting on a credit card! So I was already suspicious. I could not get credible, believable info out of them about the original debt - and they wanted to set up a payment plan RIGHT NOW. They clearly had my credit info in front of them, because they knew where I lived, what lines of credit I had currently, etc. This freaked me out a little. I started doing some research and found out that even if I DID default on a credit card ten years previous (which I don't think I did), since it had been over four years since I had made a payment, that debt was "expired" and though I could VOLUNTARILY pay off an old debt like that, no company in the world could threaten me with a judgment or legal action to collect that debt. I mean, they COULD threaten me, but they would never win the case.
Plus - there was no record of this debt on my credit report and I had never received a call from the original bank (that the scavenger debt company named) nor did I recall ever having a credit card from this particular bank.
So - I sent them a certified letter telling them this and telling them to never contact me again. And it worked.
My credit score is nearly 800 by the way. Has been for years.
HowTF do you jump to the conclusion that a lapsed policyholder is less responsible?
Go overseas for three months, not gonna drive, so you let your car insurance lapse. Where's the irresponsibility? You're certainly not going to file a claim when it's in your garage and you're not driving it.
HowTF are people responsible one day and irresponsible the next? Does that make sense?
My credit has been in the tank for the past ten years and I can't do anything about it. I've paid all my bills on time during the past ten years. HowTF does my low credit score indicate irresponsibility? Where is my elevated risk?
Go overseas and don't pay your mortgage for 3 months because you're not living in the house ......oops! Lis Pendens filed and house going to foreclosure!
No wonder your credit has been in the tank for 10 years .... you are clueless as to how credit scores work because you are fiscally irresponsible!
Let me just add, while your REGISTERED vehicle is sitting in the garage, it is still being protected by your insurance (assuming you didn't let it lapse). So if there is a fire, some nitwit crashes into your garage, a vandal breaks in, etc ...... I'm pretty sure you would file a claim when you returned from your overseas jaunt.
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