Home insurance on average has gone up 50%. That's a lot of money. While everyone doesn't own a home, most everyone of age owns or drives a car and will soon be affected by this increase. The reason for this increase is that suposedly people with bad credit file more claims than those with good credit. This reasoning does not fly with me. There are just too many variables involved to accurately agure this case.
Many of us have for years paid our monthly premiums and have never filed a claim. But because we have bad credit we are being lumped into a group who stattistically insurance companies say file more claims. Are we to believe that people with good credit never file claims? By the way. Isn't that the very reason insurance companies exist? To settle claims with those who had some misfortune in their lives.
Are we to assume that if a hailstorm comes through town that only the roofs of homes of families with poor credit are damaged? Or that a person with poor credit is more likely to plow their car into a telephone pole? I don't think so. But yet people with good credit have the lower rate and can file a claim at will. (with only a slight increase to their premiums.) Basicly people with bad credit are being used to cover the losses that the insurance companies incur from all claims.
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