AARP/Hartford insurance - Outrage!

I rarely, if ever, get "outraged" - but this takes the cake. All you "seasoned citizens" might want to check this out. Letter to the editor.

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AARP / Hartford outrage – Warning.

I cannot believe what happened yesterday when I checked my AARP/Hartford auto policy renewal online. First off, my wife and I are in our 50s, good driving records, no claims during previous year. We are being severely penalized because we don’t have the need for credit cards. We paid cash for our house and cars. We don’t use credit cards (preferring debit cards, and “pay as you go”), thus we have no record of a FICO score. Our premium was around $1600 for two cars this year. They show an increase of over $1,000 for next year. I was shocked, so I called Hartford. They said that in 2001, when I was eligible for AARP and started using their Hartford insurance, they checked my credit, and they received the same answer, nothing to report. They checked again in 2007, still nothing, but they “changed their policy about giving neutral status to those who don’t show up on credit reports.”

My wife and I are being penalized by our insurance carrier for not having run up credit card bills. I was told “you should get a credit card, or finance purchases.” With all the sub-prime lenders causing excessive turmoil in our stock and fixed income markets, and with most of the U.S. citizenry up to their eyeballs in debt with little or no savings, we’re the “questionable” ones.

If you have AARP/Hartford, you better check your credit score, unbelievable. This is nonsense.

Don Bright
Henderson

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Don

 

It is true that auto insurers rate you partly by credit score. The reason? People who use credit responsibly typically also drive responsibly. You'd think a person who never went into debt would be their dream customer. I would think this would be something that could be worked out between you, the carrier and the credit rating agency. Or just call up Progressive instead.

 

I've had to deal with the same sort of shit. I haven't had a credit card debt for 18 years now. I've offered to pay a number of years in advance on my auto ins., to make up for my not having a credit score. mind you, I've not got a bad credit score, it's just nonexistent. The ins. co. cares not about the ability to pay. They just want to find ways to justify rising premiums.
My cell phone co. was the same way. They wanted extra money due to no credit rating. So I now operate on a prepaid basis. It's been less costly and more convenient, as I don't spend much time on the phone anyway.

It's crazy, people get punished for opting out of this "consumer" economy.

 

Those that live responsibly will be punished.

Those that live recklessly will be bailed out by those that live responsibly.

I have no credit rating. I pay 50% more for insurance per year than what the vehicle is worth. I pay more in dollars than the number of miles a drive.

How about having those that have a poor driving record pay for what they have done, instead of those that have no credit rating with an excellent driving record for years.

 

Imo, the insurance cos are a formidable force in our society to frame behaviour. Trial lawyers are the insurance cos mommy.

 

Get a credit card to pay minor monthly expenses, but pay it off in full every month. That way you are not charged any interest and your FICO score will increase exponentially. Unfortunately, revolving credit accounts make up nearly 30% of your score.

 

Thanks for the comments and suggestions. I'm going to try a couple of letters to Hartford. A 75% increase is just plain irritating.

(I'll probably "vent" some more when they tell me to screw off, LOL).


Don

 

why don't you self-insure?

 

Don,
The easy way around this for future use is to just open a handful of cards with high limits and then do nothing with them. You will show as someone with a lot of credit and a lot of open credit.

Problem solved.

Your rates could actually DROP b/c of this.

 

We have umbrella policies of course, but Nevada needs to have the stupid insurance card specifically. I'll probably just pay up, but not happily. LOL.

Don