Increases in insurance premiums due to MS
Mar 17, 2014, 5:30 am
#16
Original Poster
Join Date: Jan 2014
Posts: 58
As I mentioned earlier, we have no claims on our insurance. Premium is very high due to the car driven, volume of uninsured motorists in county and now, my insurance score (which is the only variable I am hoping to resolve).
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Mar 17, 2014, 5:35 am
#17
Original Poster
Join Date: Jan 2014
Posts: 58
My car insurance is with Geico, and they just told me they are raising my rate from roughly $280 to $330 for a 6 month policy (liability-only, but with max limits, good driving record but risky demographics). I just switched to Geico back in the fall, so I'm guessing I'm just losing the rate they give you the first time around to lure you in with the hopes you'll be too lazy to switch. Seems like the only way to get the lowest rates is to switch companies every time you're up for renewal. Unfortunately Geico is still the cheapest quote I'm getting, so looks like I'll be staying with them at least for another 6 months.
If you are managing your MS well, I don't see why it should affect your credit score and insurance risk. Maybe if you are applying for a ton of new cards every 91 days, but I for one am applying for a lot fewer new cards nowadays. And I always pay in full before statement cuts so utilization stays low. Last I looked it was in the low single digits. From your post it looks like you are waiting to pay in full until the due date - which is fine, you have that long to pay to avoid interest, but that will increase your util which can have negative effects beyond car insurance, i.e. difficulty getting more CCs, mortgage refi, etc. so it's better to avoid the problem by arranging things so that your statement balance is always small. Also, you might want to consider pulling your CLUE report, as you get a free one annually like with the credit bureaus and it could be that there is a claim listed on there that is raising your premiums through a case of mistaken identity or whatever.
I don't see how this makes any sense, in the same way that a coin that has been tails several times in a row still has a 50% chance of being tails on the next flip. I would think that a claim-free history, both with that company and with other companies (which they can find out about via pulling CLUE report) should be a positive thing. Someone who has a past claim is more likely than not a worse driver than someone who doesn't, all else equal, because the worse a driver is, in other words the more likely they are to have an at-fault accident, the more likely they are to have claims on their record.
If you are managing your MS well, I don't see why it should affect your credit score and insurance risk. Maybe if you are applying for a ton of new cards every 91 days, but I for one am applying for a lot fewer new cards nowadays. And I always pay in full before statement cuts so utilization stays low. Last I looked it was in the low single digits. From your post it looks like you are waiting to pay in full until the due date - which is fine, you have that long to pay to avoid interest, but that will increase your util which can have negative effects beyond car insurance, i.e. difficulty getting more CCs, mortgage refi, etc. so it's better to avoid the problem by arranging things so that your statement balance is always small. Also, you might want to consider pulling your CLUE report, as you get a free one annually like with the credit bureaus and it could be that there is a claim listed on there that is raising your premiums through a case of mistaken identity or whatever.
I don't see how this makes any sense, in the same way that a coin that has been tails several times in a row still has a 50% chance of being tails on the next flip. I would think that a claim-free history, both with that company and with other companies (which they can find out about via pulling CLUE report) should be a positive thing. Someone who has a past claim is more likely than not a worse driver than someone who doesn't, all else equal, because the worse a driver is, in other words the more likely they are to have an at-fault accident, the more likely they are to have claims on their record.
Mar 17, 2014, 5:36 am
#18
Join Date: Oct 2009
Location: Land of the parrots and parrotheads
Programs: Several dozen
Posts: 4,820
Well, if the insurance rates bother you, move to an area with good public transit and ditch the car payment, gas, maintenance and car insurance. Being able to tell the energy and insurance companies where they can go is priceless! 
Mar 17, 2014, 5:40 am
#19
Original Poster
Join Date: Jan 2014
Posts: 58
I wonder what these "so called derogatory items are from MS" as the only thing I can think of is high reported balances. If so then this is a simple issue to fix, FICO scores don't have a memory of past utilization so since you are only using one card (SW) to MS just create a cut off date a few days before the statement cuts. Then start again after that. Go have them rerun your totals after you fix your utilization reporting and you should be fine.
I am sorry I wasn't clear.
I will begin paying before statement cuts for sure. Many thanks.
I had been doing app-o-ramas every several months for my husband and I until I realized that there were no exotic trips in my future because my priority has been to support my son plus we have a great time as well!
Mar 17, 2014, 5:43 am
#20
Original Poster
Join Date: Jan 2014
Posts: 58
There really isn't such a thing as loyalty when it comes to insurance. When they up the rate beyond reason I switch. I have found cheaper deals when I shop other agents outside my area yet within my state. Certain agents in other areas of a state can sometimes quote better rates from the same company than in the area you live from what I've found (depends on your area). I was with Allstate for over 25 years, but they became unreasonable even though my score was consistently in upper 700s and low 800s (the normal FICO score with max of 850 I believe) and no claims. I churn cc all the time over all the years. Anyone at 800 is in top 1% of the nation, right?
Anyhow, I think the longer you are with a company without a claim, the chances of a claim coming is greater in their eyes and maybe our insurance score shows more risk and they raise rates fast. They don't really want you anymore unless you're willing to pay that much more it seems. Switching hasn't hurt me.
Anyhow, I think the longer you are with a company without a claim, the chances of a claim coming is greater in their eyes and maybe our insurance score shows more risk and they raise rates fast. They don't really want you anymore unless you're willing to pay that much more it seems. Switching hasn't hurt me.
Mar 17, 2014, 5:46 am
#21
Original Poster
Join Date: Jan 2014
Posts: 58
It SOUNDS like there was an unrelated derogatory item to MS (e.g. an unpaid medical bill). This would explain the auto insurance rate issue.
When OP says "...have had higher revolving credit card charges (all of which are paid 100% in full prior to due date)" I get the impression that MS activities might not be paid off until after statement reports high MS balances, which certainly would hurt scores.
In order to negate the score impact from MS, it's important to pay off MS in full BEFORE the statement even cuts.
When OP says "...have had higher revolving credit card charges (all of which are paid 100% in full prior to due date)" I get the impression that MS activities might not be paid off until after statement reports high MS balances, which certainly would hurt scores.
In order to negate the score impact from MS, it's important to pay off MS in full BEFORE the statement even cuts.
"When I pulled my full credit report I did have one derogatory item on my credit report which was quickly nulled by the reporting company."
Mar 17, 2014, 5:58 am
#22
Join Date: Mar 2007
Location: Midwest U.S.A
Programs: Too many to list. Since the early 90's.
Posts: 1,407
I understand. It is a pain. Plus, sometimes the new policies I look at aren't what I want even if the price is okay. Can be very time consuming and sometimes not worth switching.
Mar 17, 2014, 12:32 pm
#23
Join Date: Aug 2013
Posts: 97
The following are considered derogatory remarks: "number of new revolving accounts, bank related inquiries on your credit report, customer-initiated credit report inquires,current balance on cc compared to highest balance ever carried, etc."
I am sorry I wasn't clear.
I will begin paying before statement cuts for sure. Many thanks.
I had been doing app-o-ramas every several months for my husband and I until I realized that there were no exotic trips in my future because my priority has been to support my son plus we have a great time as well!
I am sorry I wasn't clear.
I will begin paying before statement cuts for sure. Many thanks.
I had been doing app-o-ramas every several months for my husband and I until I realized that there were no exotic trips in my future because my priority has been to support my son plus we have a great time as well!
Mar 17, 2014, 12:46 pm
#25
Join Date: Aug 2013
Posts: 97
I'm not real literate on credit scores, but that is what I printed out from my Our Transunion credit reports as that is the company All state uses.
Initially I checked other ins companies but stopped because of my fear of being dropped if an incident were to occur. We live in one of the top counties in the nation with uninsured motorists and they don't drive well either!
Initially I checked other ins companies but stopped because of my fear of being dropped if an incident were to occur. We live in one of the top counties in the nation with uninsured motorists and they don't drive well either!
Mar 17, 2014, 3:05 pm
#27
Join Date: May 2013
Posts: 288
I shop insurance every single year when homeowners comes due. I generally end up switching on average every other year, but I check them yearly. It seems some companies will just increase your rates every year, counting on the people that are to lazy to shop around.
You also should price each of the items you insure by themselves (Car, Home, Ect..). My current setup of Libery Mutual for home, and Geico for Auto was $200+ cheaper than having both policy's with any company. In my state Geico uses a totally different risk formula than all other companies. I have yet to find anyone that was within 20% of Geico's rates here.
You really should take a hour or two to look around for a new insurer. You might be surprised and find one that saves you a few hundred dollars, or more. That's pretty good for a couple hours work.
You also should price each of the items you insure by themselves (Car, Home, Ect..). My current setup of Libery Mutual for home, and Geico for Auto was $200+ cheaper than having both policy's with any company. In my state Geico uses a totally different risk formula than all other companies. I have yet to find anyone that was within 20% of Geico's rates here.
You really should take a hour or two to look around for a new insurer. You might be surprised and find one that saves you a few hundred dollars, or more. That's pretty good for a couple hours work.
Mar 17, 2014, 6:56 pm
#28
Join Date: Dec 2012
Location: JFK
Programs: *$ Gold :)
Posts: 1,061
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When OP says "...have had higher revolving credit card charges (all of which are paid 100% in full prior to due date)" I get the impression that MS activities might not be paid off until after statement reports high MS balances, which certainly would hurt scores.
In order to negate the score impact from MS, it's important to pay off MS in full BEFORE the statement even cuts.
When OP says "...have had higher revolving credit card charges (all of which are paid 100% in full prior to due date)" I get the impression that MS activities might not be paid off until after statement reports high MS balances, which certainly would hurt scores.
In order to negate the score impact from MS, it's important to pay off MS in full BEFORE the statement even cuts.
CreditKarma.com to help understand influance of basic factors to credit score.
Mar 17, 2014, 7:15 pm
#29
Join Date: Feb 2003
Location: Khyber Pakhtunkhwa
Posts: 1,929
