Buying car insurance with bad credit? This is definitely a good topic to talk about. The real question is: Why do car insurance companies charge a higher premium with someone
with bad credit? The reason according to them: Insurance companies run credit checks on applicants because risk assessors and studies have shown that a person's credit is a good predictor of
insurance claims. They have found a strong relationship between credit history and insurance claims.
Our question is to them: Is this unfair profiling? We believe it is. Definition: (Profiling is defined as: recording a person's behavior and analyzing psychological characteristics in order to predict or assess their ability in a certain sphere or to identify a particular group of people). For example: Can a car insurance company charge you higher rates if your African American, Hispanic, Caucasian or American Indian? Absolutely not. So, if American Indians had a higher accident rate than Caucasians, would it violate civil rights if the insurance company charged a higher insurance premium for American Indians? We would think so!
So, is this profiling: Just because your credit is bad, does it really mean that your going to make your car insurance payments late or get into a accident? Honestly, we think it is just a excuse to charge a higher premium to those less fortunate. For example, if your credit has been bad for the last five years and your driving record is perfect, how do they justify you as a higher risk? Before you know it, a blond hair person may have a higher car insurance premium than a brunette or vice versa. Do you get my opinion on this? Where does it stop? You can make your own assumptions on that.
We just want to know why there is not more laws protecting those with bad credit trying to obtain car insurance. In almost all U.S. states, you must have car insurance to drive a automobile. We believe large corporations take advantage of this. Individuals with good credit can afford to pay a lawyer to fight for their rights and avoid these schemes, but people with bad credit and are just trying to make a living really just don't have the extra money to fight it.
In our opinion, our society needs to look out for people that our currently in a bad financial situation because one day they just may be there themselves.
This article is information for thought and is a expressed opinion of the editor and readers should consult professional legal advice before taking any action.