Now this Sucks

Discussion in 'Business Operations' started by Frontier-Lawn, Nov 28, 2007.

  1. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    i get this letter today from my insurance company since i'm up for renewal in dec, they're dropping me due to poor credit. now i have all my business with them, personal cars, life, & company car and gen liability. i call them and ask what gives. they tell me whether or not if a person has a spotless driving record, if there credit falls below a certain # regardless if they have been with them for 15yrs or 1 yr they will drop them asap after the payment on there account is done for the period the payment was for.

    what gives there's company's the right to do this?
    they said i can go over to there secondary company of there's for 3x what i was paying.

    any one else out there ever have this prob? we'll back to not being legit for a while :dizzy:

    PS i have had this insurance company since 1994
  2. dave k

    dave k LawnSite Bronze Member
    Posts: 1,178

    I have never heard of a insurance company doing it for poor credit ratings, but I do know banks will not give you a checking account with poor credit, which insurance company do you have? Try shopping around, I have State Farm and don't have problems although I have excellent credit. Good luck to you, I wonder if it has to do with you being in Fl.? Alot of insurance companys are running as fast as they can from the sunshine state, can't blame them.
  3. Daneman

    Daneman LawnSite Member
    Posts: 154

    What happened to you to make your credit score lower? Is it true, or could you have been a victim of identity theft? If you're unsure, I would get a copy of your credit report from the 3 main agencies, and review the accuracy. I personally would shop other companies, it can't hurt to get multiple quotes. At least it didn't happen during the spring rush, you should have some time to do some research. Good luck, sorry to hear that happened to you.
  4. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    wife left work (6+ months)for a high risk pregnancy and after the kid was born on 06/18/07 she cant seem to get a job any-wear. at-lest we get $2,200 per month from me so some of our credit bill's don't pet paid.
  5. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    some health insurance companies now do this too.

    also i just got off the phone with state farm they told me, so sorry go find some one else for your needs.
  6. Scagguy

    Scagguy LawnSite Bronze Member
    Posts: 1,522

    The reasoning behind this is insurance companies rely heavily on their actuaries. Supposedly, they have this formula that indicates the worse that your credit is, the higher risk you become. I know this is very true for Geico, because they dropped a friend of mine after he had to file chapter 7.
  7. Daneman

    Daneman LawnSite Member
    Posts: 154

    I would still advise you to obtain your credit report and check to see if there is anything else. That's probably a good idea for all of us though.
  8. JD657757

    JD657757 LawnSite Member
    from chicago
    Posts: 78

    I had the same thing happen. I was able to get them to keep me though by prepaying for the whole year up front.
  9. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    I know ALPHA does this. David had a CH 7 a few years before I knew him and we can't go there for anything.

    When we were buying our house Alpha contacted us because they were somehow connected with the company that was going to finance us. I told the agent that David had poor credit and he talked me into putting in an application anyway. So, I paid the fee and a few days later was told they couldn't give me a quote. So, I pretty much gave the guy "shame on you" attitude for taking my fee even though I told him the credit was bad.

    We got our house loan, and insurance through someone else.

    Gieco hasn't given me any problems on my personal vehicle insurance though. I think the banko dropped off this past srping though. But the credit's's always shot.
  10. EngineeredLawns

    EngineeredLawns LawnSite Member
    Posts: 100

    Insurance companies have been doing this for several years. The rates are quoted not only on your pass record, but your credit scores. Does not seem right, but that is the insurance industry.

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