Well..I think I have heard it all now. A credit check in order to obtain car insurance. How nice. Not only do car insurance companies ask for your social security number, which they have no right to do or use for, but now they are going to use it to check your credit rating to find out if they can give you insurance. Does anyone else see how wrong this is?
First of all, car insurance is mandatory in all 50 states in order for your drivers license to remain valid. Second of all, any time something is made mandatory (in order to drive legally) that should automatically say that you have to obtain the insurance with whatever means you have. Now, the insurance industry is somehow creating their own rules, and unfairly demanding that you Qualify for something that was REQUIRED of you by the state government. WAY WAY WRONG!
Lets take a look at a scenario. First..State law requires you to have insurance to help protect you and others from serious financial debt due to an involvement in an accident. It is an attempt to rid the streets of uninsured motorists. Yes, it makes insurance companies rich that the state has made it a requirement. Now..Lets look at Joe Public. He has insurance, and his credit is smudged pretty good due to a divorce and a death in the family that he burdened financially. His Insurance policy is up for the year, and he decides not to renew because the rates are too high, and goes shopping for new insurance companies. He finds a good rate and applies. The insurance company sadly informs Joe Public (something he already knew), that his credit is pretty bad and that they cant insure him. He applies at another, “we see here, Mr. Public, that you have a few inquiries on your credit worthiness, which we deem as derogatory information on your history, we can not insure you”. Now Joe is getting really worried. He goes to yet a 3rd company, and experiences even more disdain for his credit profile. Now..Joe has to go to work, and he cant drive to work, because he couldn’t get his insurance, and his license is revoked. With a revoked license, now he cant drive to work to make money to pay his debts or buy insurance. He then loses his job because he cant drive to work with an invalid drivers license because he couldn’t get insurance because he wanted a lower rate but his credit was bad. Now he has to apply for unemployment, but he cant collect that because he can’t drive around looking for work that unemployment requires you do while collecting unemployment. So they stop his payments. Where is this all going you may ask? Well, its obvious Joe Public is going to die in a gutter because he couldn’t get car insurance because he was in debt for things out of his control.
How sad is that? Is this what we are going to allow, for companies to silently create their own rules that work AGAINST state and federal demands and requirements? Its going to take every voice in America to speak out against this outrage in order for it to change. Do you think you will EVER be in this situation? Its very possible, but if you think about it, it only takes ONE thing out of your control, to get that unstoppable ball rolling down hill, and we will never hear from you again.