How many count a good credit rating among their losses from Hurricane Katrina? Logic suggests more than just a few. Everything in thousands of homes had to be replaced; income, and in some cases, jobs were lost; and, as SLABBED readers know, there are insurance claims that have yet to be paid and untold thousands underpaid.
In a weekend Sun Herald story, Bad credit can mean higher insurance premiums, Anita Lee reports the latest bite-you-in-the-behind news that makes Katrina, the Hurricane that keeps on giving to those on the Coast who saw their credit score go south following the storm.
Coastal policyholders are well aware a hurricane is guaranteed to hike insurance rates, but fewer realize their credit reports also are factored into homeowner and automobile insurance premiums.
Consumers who have suffered financial setbacks because of the economy are seeing higher homeowner and auto insurance premiums…
Insurance companies contend consumers with bad credit tend to file more property insurance claims. Consumer advocates question the accuracy of studies that find a correlation between credit and risk.
Stories like this are a reminder that there are lies, damned lies, and statistics – and that many insurers are guilty on all three counts – but for the moment, let’s just focus on the statistics used to justify credit-based premium increases. Continue reading “higher and higher – the latest from the Sun Herald’s Anita Lee on the increasing cost of insurance”