10 Confessions Of An Insurance Telemarketer

if you dont provide SSN they cannot give you a correct price, they have to run your credit report and the price adjusts according to your credit score.

when I was buying my 2nd home shopping for a good rate for my car, my bank wanted me to explan the reason for the inquiry from allstate.on my credit report. I don't believe the agent needs your SSN.
There are so many scams that I will never buy from anyone that call me on the telephone.

Sounds like you have a bit of experience running one of these scams ...

No, he just knows the widely known FACT that credit scores make a big difference in rates.

Check your credit report and see how many hits are on it from your current insurance company.  Or from past companies that send you quotes to try and get you back.

Well, it may be "a fact" but it sure as heck doesn't make it right.  What justifiable reason could an insurance company have for running your credit at all?  They are not extending credit to you.  You are not expected to pay back any loans.  So, why do they need to know your bill paying history?  They act like your credit is somehow related to how you drive.  That if you default on loans, that somehow translates into being a bad driver or that they can somehow determine how safe a driver you are by how you pay your bills.  That's ridiculous!

And just fyi, I am with State Farm for 10 years and they have NEVER run a credit check on me.  It could be different for new customers, but they seem to be very reasonable about how they do business at least as far as insurance companies go.

In response to your statement about State Farm, I worked as an insurance producer for 9 years and YES the FACT is...they do run your credit every time you change vehicles, coverages, have an accident and upon every renewal. To think that they don't you are certainly in error. Insurance companies believe that if you are responsible in paying your bills on time, you are a "more" responsible driver, therefore a less RISK to them. In my experience this has not proven to be true but that's what they say....to me its just a way of charging more premium to those that can't really afford it in the first place otherwise they wouldn't have bad credit!! Catch22 if you ask me..

http://www.insurance.wa.gov/consumers/credit/credit-scoring-insurance.shtml .  

From the State Insurance Commissioner in Washington regarding how Credit Scoring is currently allowed to be used in underwriting homeowners and auto insurance. Insurance companies have filings in all states to use credit scoring for personal insurance.

And by the way, Marko, the WA State Insurance Commissioner doesn't believe it's right, either.  He's working to get the law changed.

They check your credit because it determines what they will charge you Bad credit HIGHER PRICE!!

I have been with State Farm for over 9 years and if they use my credit score for my insurance rating, I am not aware of it.  My rating isn't all that good, but they (State Farm) has been good to me.

By the way, GEICO tried to sell me insurance and I gave them all the info they asked for.  Their quote was higher than State Farm's with far less coverage ever though I am a Gulf War Vet.  Figure that.

"I will never buy anything from anyone who calls me on the telephone" is a pretty good rule of thumb anyway.  If I want something, I'll seek out a merchant: buying from telemarketers only encourages them.

You don't have to be dim enough to respond to someone calling you on the phone to get your credit report hit. Voluntary, online inquiries made that happen for us. We later  got a letter from All State saying something looked odd about our credit rating. We know our rating is high, and there is nothing wrong with our record. Guess we'll just stay with our existing company.

You don't have to be dim enough to respond to someone calling you on the phone to get your credit report hit. Voluntary, online inquiries made that happen for us. We later  got a letter from All State saying something looked odd about our credit rating. We know our rating is high, and there is nothing wrong with our record. Guess we'll just stay with our existing company.

So very true however, 82% of insurance companys as well as many other entity's always ask for your SSI number to check your credit report.
which is "ILLEGAL" for Anyone  out side of the IRS or law enforcement to access your SSI number for Any reason. they do not have the legal RIGHT! to Know or possess  your number for any reason. i have persued this serveral time with law suits against those you ask for my nymber or have possession of it expecially banks and collection agencys  They  in particular  Cannot ask for your SSI number to provide or levy fee's  based strickly on your credit. it's called "DISCRIMINATION"! and its not justified.
next time someone ask you for your SSI number? tell them to make a number up! and if they need your SSI number refer them to the IRS to try to Aquire it these companies that ask for your perosonal info put youe life in jepardy but storeing it where  any hacker or thief can access it or sell it to other people which is going on on mass proportions Today! Force these Idiots  to revamp thier forms to follow the Law in this process. and DO NOT! let them aquire  or store or violate your right to privacy let alone put you in a catagory that you have to pay more Money!  just to do business cause they think your a risk of non payments  byt your credit report  As  the Lady at ALLSTATE INSURANCE in Denison Texas told me on the phone.i never had insurance with her or Allstate but what is funny she has called me several times trying to sell me insurance and has retained  my SSI number and repeats  it back to me each and everytime.
next one on the list to sue,,,,,,,,,,,

"I will never buy anything from anyone who calls me on the telephone" is a pretty good rule of thumb anyway.  If I want something, I'll seek out a merchant: buying from telemarketers only encourages them."

I'll second that. I'd like to expand on it a bit:
"I will never buy anything from anyone who knocks on my door trying to sell me something" is a pretty good rule of thumb anyway.  If I want something, I'll seek out a merchant.