Getting The Right Rate

Shelly is mad because of what the insurance company did to her because of her low FICO score.

QUESTION: Shelly’s insurance rates were increased because of her credit bureau score going down because she is debt free. That makes her mad, and she wants to know what she should do. Dave is in the same boat with her.

ANSWER: This is absurd, and it’s ridiculous that the insurance companies look at it this way. The larger percentage of low FICO score are due to someone not paying a bill. You and I suffer for this because we don’t have any debt, which leads to a low credit score. I would tell them that an increase of $200 in my premium is a good indicator that I will change insurance companies.

You could also track down an independent insurance broker and see if they shop for you and make a market for you. DO your best to not give a company like this your business.