Quote:
Originally Posted by tophcfa
It’s not a scam, property and casualty insurance companies are in the business of profitably underwriting, pricing, and diversifying risk. Statistically significant data has proven that customers with lower credit scores are more likely to file tenuous claims and are therefore riskier to insure. Hence the higher premiums based on inferior credit scores. Without this credit based pricing adjustment, everyone would be charged higher premiums, effectively requiring those with better credit to subsidize others.
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Great post! I'm amazed that people don't understand this basic concept and even boast about not needing good credit anymore.