Date:         Sat, 8 Feb 2003 13:24:09 -0700
Reply-To:     Bill N <freeholder@STARBAND.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Bill N <freeholder@STARBAND.NET>
Subject:      Re: Insurance - credit check
Content-Type: text/plain; charset="iso-8859-1"

Women get better rates because women, on the average, file fewer claims.  Same with married
people.  Does being female or married make one a better driver?  Well, the numbers indicate
that it does, on the average, and insurance is a game of averages.

I echo Ben's statement that income is not a determiner of credit rating.  Some people pay their
bill on time every month if they have to live on peanut butter sandwiches.  Others pay poorly
although their income should be ample.  Years ago, towns were smaller and people stayed in one
place, so a person's character was well known to his neighbors.  Now, since we are becoming a
more faceless society, the credit bureaus serve this function.  People have bad credit in many
cases not because they are poor, but because of other factors.  When somebody signs a contract,
it is no different than a promise and a handshake.  Some are willing to sacrifice, work two
jobs, do whatever it takes to keep their word.  Others are not.  The best thing a lender can
say about you is that you paid "as agreed."  Occasionally someone gets behind due to illness or
other causes beyond their control, but far more people just fail to do what they agreed to do
when they borrowed the money.

In the first case, of legitimate problems, I know the Credit Unions I work with are very ready
to help in any way they can.  Frequently you can skip payments, consolidate, or take other
steps to get through a bad time.  If that happens to you, go see the lender and explain what is
happening.  Ask how they can help, and they will try.  Go in person.  I am a firm believer that
good news can be given over the phone, but bad news should be delivered face to face.

Bill

----- Original Message -----
From: "David Brodbeck" <gull@CYBERSPACE.ORG>
>
> Insurance companies are in the business of making money.  Anything they
> can use as an excuse to raise your rate, they will, regardless of whether
> it has anything to do with how good a driver you are.  I've been told my
> rate would be lower if I were female or married, traits that I don't see
> have much to do with my driving either.
>
> Raising rates on people with poor credit scores is particularly low
> because it's kicking someone who's already down.  They're already short on
> cash, so you charge them more.  Despicable.