How does a credit check on your name affect your insurance

[Holst1981]

There may be a legitimate correlation between credit score and risk.
Shame they can't show us the data to back it up.

I doubt it's a linear relationship with higher credit score = less risk.

Remember this is the risk of a claim and it's cost.

It may be that people with a high score get higher claims cost (with all other things removed from the stats)

I would try and talk them into giving you the lower price, if you can be bothered.

But if it's the cheapest, it's the cheapest.

 

[jonessa]

Not entirely sure what credit rating has got to do with insurance?

As others have said, if you finance the insurance (DD), they may take into account some form of risk factor.

But to offer to pay in full up-front, and they refuse?

I would've bought the insurance with half the surname, phoned them and just paid the £25 admin fee to change the name.

 

[Rids]

There may be a legitimate correlation between credit score and risk.
Shame they can't show us the data to back it up.

I doubt it's a linear relationship with higher credit score = less risk.

Remember this is the risk of a claim and it's cost.

It may be that people with a high score get higher claims cost (with all other things removed from the stats)

I would try and talk them into giving you the lower price, if you can be bothered.

But if it's the cheapest, it's the cheapest.

I would imagine somebody with a poor credit score is far more likely to do some kind of crash for cash scam where they slam into a car packed full of people they know and take a share of the whiplash payments, writing off their own car in the process and pocketing the cash for that.

I'm obviously not suggesting this is the case, but its not hard to think of a possible reason this would exist. A poor credit score generally indicates a shortage of funds.

 

[b0rn2sk8]

I would just suggest its a way for them to hide the 'new' customer price from an existing one, simple as that.

 

[Nasher]

in the end, it's a scam. These big insurers almost always try to milk you if you stay with them for more than a year. You really have to game it to get the best prices with them.

Going through a broker usually gets a better deal.

 

[Kiethton]

Yeah take out the policy and use the 14 day free period to change the name (non-material alteration so should be free)

 

[muon]

Yeah take out the policy and use the 14 day free period to change the name (non-material alteration so should be free)

They would be within their rights to force you to cancel the policy.

A contract with a different policyholder is not immaterial.

In fact creating a policy under a fake name is I bet a red flag for insurance companies.

 

[acemastr]

It's a thing here, you get an insurance credit score with your report.

 

[Kiethton]

They would be within their rights to force you to cancel the policy.

A contract with a different policyholder is not immaterial.

In fact creating a policy under a fake name is I bet a red flag for insurance companies.

You'd just make it a typo rather than a full-on name change

 

[muon]

You'd just make it a typo rather than a full-on name change

Well up to you to risk it.

What if they recalculate your premium after the change or flat out refuse and cancel your policy?

Given that it is well known that insurance prices are very personal, I wouldn't be surprised. Especially as it could be seen as possibly trying to circumvent antifraud measures.

 

[HangTime]

In what way is credit-worthiness a measure of risk for a non-financial product (he's paying outright)? That would be as bizzare as my buildings and contents insurance going up because I choose to holiday in the Algarve :/

Sounds like something's amiss to me.

Poor credit rating may be deemed by some as carrying an increased risk of fraud.

 

[cadmunkey]

How long until they start asking for eye and hair colour along with height and blood type?

People with brown eyes are 5 times more likely to have accident according to our stats......

Wouldn't mock.. this is exactly the way insurance analytics is going. Good look brown eyed folk!!!