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Discussion Starter #1
So i called my insurance company last week to get info in renters insurance. And while on the phone the quoted me 8.53 or somewhere around that. A month. I thought to myself thats a great deal and very affordable for me with my new apt. So i tell them to start a policy and i will send a check in the mail to get things started. So thats just what i do. Then yesterday i receive a statment in the mail saying that my monthley rate is now over 10times higher. (didnt say anything about an adjustment) A little over 100.00 a month. Im thinking to myself WOW thats really high. And clearley i can afford that at this time. And with this notice was a letter saying that based on my credit rateing/score through trans union this was the lowest rate they could offer me.

So now im in shock. What to do because i was quoted this rate. Here is my plan of action thus far.

1.) contact state farm to talk to them about this and see why there was such a jump

2.) Contact trans union to get a copy of the report they gave my agent. Cus they say in the letter i can do this (How do i ask though?)

3.) Shop around for a new company as i think im getting the short end of the stick here

Any other help would be appreciated. Also for those that do have renters insurance who do you use and how have they treated you.
 

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$100/month for renters insurance? Yeesh.:passout: I don't even pay that much for car insurance, and I have State Farm as well.
I don't remember what I paid for renter's insurance once upon a time, but that seems ridiculous.
 

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My renters insurance is around 6 dollars a month. My new truck, my new travel trailer and renters insurance is 800 dollars a year. Cheap me tinks.

Farmers insurance, Neal Brock agent, King City, Oregon.
 

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You can thank the powers that be for thinking that your credit report tells them about how you drive and what kind of liability you'll be.
 

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Discussion Starter #6
Yea shoot. I have been driving sence age 16 (now 22) and havent had a single accident, moving violation, etc... And i really, really think it has to be an error on their side. Maybe they put an extra zero in there or something. I really dont know. All i do know is that its got me all stressed out and of course i cant get ahold of anybody in the office until tomorrow being its a weekend and i didnt even check my mail until 9:30 last night.
 

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Discussion Starter #7
Ok so second question. I have never had to submit a letter to a credit agency to receive a copy of the credit report they had used. How do i go about doing such a thing. What should i include in the letter. Im assuming name, phone number, address. Should i include my SS number? And what else.

Thanks for the help on this
 

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You can thank the powers that be for thinking that your credit report tells them about how you drive and what kind of liability you'll be.

:yeahthat:

The myopic voters in this state had a prime chance to shoot down this festering load of crap recently, but the insurance industry coughed up a few hundred grand in advertising to defeat the measure. They were so concerned with saving us money that they spent a big chunk of their own to help us out. (That was biting sarcasm, BTW)
 

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They base you rate on your credit score :bigshock::bigshock::bigshock:,which has nothing to do with the risk you have it`s just another way to soak it to you :shrug::shrug::shrug:
 

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Thresher,

State Farm should be able to provide you a 1 800 number to call the credit reporting agency they are using.

Just tell them that your insurance was increased due to what was found on your credit report and that you would like to received a copy of the credit report so you can dispute or recitify what is on your report.

Good of bad credit you should not be paying $100 per month for renters insurance. Are you sure your not seeing to total annual premium and thinking that is your monthly statement???
 

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Thresher,

I worked for insurance companies for about 12 years. We used Credit Report as an underwriting tool also. The value of credits reports can be debated for both sides. People that received "poor" credit reports fell basically into three categories.

1. People that were young and had no credit, i.e. no credit card, auto loan, or consumer loan history. No bad history, just no history.

2. The older generation who also did not have a credit history. These people save and pay most things with cash.

3. Lastly, people that actually have poor credit history with late payments, bankruptcies, etc.

Normally, if a person is in category 1 or 2, the insurance company can make an exception. You or your agent just needs to ask. Not all insurance companies use credit reports, you can/should shop around. Sometime on-line sites like insweb can help you out.

Maybe being 22 you fall into the first category. If that is true, i would recommend a game plan on establishing a credit history so when you want to buy your first car or home you can gets the best interest rates.

I would not worry about the premium increase. If they do not decrease the premium, shop around and then cancel this policy.

Good luck.
 

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Are you sure that is not your annual premium?
12 months x $8.53 = $102.36
 

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Discussion Starter #13
Are you sure that is not your annual premium?
12 months x $8.53 = $102.36
See thats what part of me wants to beleive as well. So thats why im gonna call them again in the morning and see if thats the case. As for the post above this one. I have a credit card with a 2500 lmit and a 0 balance (only use it to pay for school expences) So im working on building my credit. So im probly falling into catagory 1
 

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There has to be some sort of mistake. Even if I were to quote you the worst case scenario you would only end up at about $150 per year. Bad credit, no credit, either way, worst case possible it wouldn't be any more than that. Now if there were losses reported at the address at which you live now and they were assigned to you that could have a big effect on your premium but you are more likely to get a decline rather than have a rating that high. If you check with them you will most likely find out that there is a mistake or the premium you thought was monthly is in fact an annual premium. If you do need to shop around, feel free to contact me and I can give you a quote as well. Very simple and easy. Best of luck.
 

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Im using American Family Ins. they did just start a VOLUNTARY credit checking program which I declined but back to the point we pay around $10-12 a month for a slightly extended coverage. I would certainly check with the agent you talked to and get all the details and follow through.

Paul
 

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Discussion Starter #16
Everythings ok. I talked to my insurance people and that was my yearley rate. Not monthly rate. So everythings good
 

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You can thank the powers that be for thinking that your credit report tells them about how you drive and what kind of liability you'll be.
Actually, you can just thank mathematics. It turns out that your credit rating is a pretty good input to a risk model that predicts your insurance usage. The likely explanation is that the behaviors that lead to credit problems lead to other problems as well.

You can yell about it all you want, but it's statistically valid. Since insurance is statistically based, it makes sense for them to do this, and for them to be allowed to do this, just as it makes sense for them to charge males under the age of 25 more for their insurance. Insurance is about charging you a rate that is appropriate for the risk that your pose to the insurance company. Bad credit is demonstrably associated with higher risk.
 

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SH- I understand what you are saying but I dont think it to be true for the vast majority. the comparison for teens insurance rates is not apples to apples. I have poor credit due to some bad business choices that I have made, BUT I have never had a claim on my insurance in 22 years of driving. I know several other couples who could claim similar statistics. This is finding someone guilty before they have commited a crime and with legally mandated auto insurance you have no choice but to be found guilty and pay the penalty or forgoe a vast amount of priviledges others are allowed. only a fool belives statistic as they can made to say anything you want them to say. (to paraphrase one of americas greatest thinkers)

Paul
 

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this clearly falls into the catagory of not asking for directions.....jumping the gun...........etc.......oh wait.....I did the EXACT same thing...hehehehe...scary huh???....glad all is well....
 
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