Insurance BS

Maybe what you heard was incorrect, but I believe that the "low credit = bad driver" is not what the insurance companies do.

There is a strong correlation between bad credit and the likeliness you will file a claim. That has no relevance to your driving ability or record. The more likely you are to file a claim, the more money you are likely to cost the insurance company, therefore the higher your rate should be.

From a standpoint of paying for your risk, it is only fair to charge higher risk people more money. Risk is partially determined by how likely you are to file a claim. From a larger perspective, insurance is never fair.

There are problems with this, though, since people with bad credit tend not to have as much money (which is why they're more likely to file a claim), and thus can afford high insurance premiums less, and are more likely to go uninsured if their rates are hiked, which increases the uninsured motorist insurance rates for insured people.....you get the point.

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