Freezing Credit Report - Effect on Auto Insurance

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Copper John
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Freezing Credit Report - Effect on Auto Insurance

Post by Copper John » Mon Sep 11, 2017 11:13 pm

I recently froze my credit file at all the credit reporting agencies after the Equifax fiasco. I have since read several reports from people who froze their credit reports in the past and had their auto insurance premiums increase. It seems their premiums were partly based upon their credit scores and because their insurers could not pull credit reports upon renewal their insurers raised their rates. In some cases the insurers did not notify them nor were their insurers always able to tell them what credit service they utilize.

https://www.computerworld.com/article/2 ... miums.html


For those of you who have had credit files frozen for a number of years, have you encountered this issue and if so how have you dealt with it ?

dccboone
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by dccboone » Mon Sep 11, 2017 11:46 pm

I can only speak for myself. We froze our credit in 2013 and it has had no negative impact on our insurance rates that I'm aware of. During that period we switched our insurance to Geico because they beat the rate we were paying a State Farm. In March of this year, we switched to Grinnell Mutual because they had a better rate than Geico. It was not an issue either time. I did have to unfreeze one credit agency for 24 hours last year when Direct TV wanted access to our credit to provide their best available price. It was a hassle, but not the end of the world. Either way, I sleep better at night knowing I control who has access to our credit and whenever credit is opened in our name. Best of luck.

Rupert
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by Rupert » Tue Sep 12, 2017 6:14 am

My credit has been frozen for years, and my auto insurance premiums have declined over that period. Of course, my cars have gotten older, but, still, premiums haven't increased.

Copper John
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by Copper John » Tue Sep 12, 2017 8:15 am

Thanks for the feedback guys. I wonder if your insurance companies may still have been able to to do soft credit inquiries even with a credit report freeze because they were businesses that you had a relation with?

I did just look at my Experian credit report and I see my insurer State Farm does appear to be doing periodic credit report pulls (prior to freeze)

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CardinalRule
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by CardinalRule » Tue Sep 12, 2017 8:35 am

Interesting question; I'll want to check with our longtime insurer (State Farm) on this. We froze our credit reports before the Equifax breach, but only this year.

From the AG website of my state (emphasis added):

A security freeze means that your credit file cannot be shared with potential creditors or insurance companies;

A security freeze can help prevent identity theft since most businesses will not open credit accounts without checking a consumer's credit history first;
A freeze is not 100 percent fail-safe as some creditors can and will issue credit without pulling a credit report. Firms that you have an existing business relationship with will be able to pull a report despite the freeze and your information may be released for the purpose of prescreening for credit offers.

http://www.atg.wa.gov/credit-freeze-fraud-alerts

Rupert
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by Rupert » Tue Sep 12, 2017 9:25 am

Copper John wrote:
Tue Sep 12, 2017 8:15 am
Thanks for the feedback guys. I wonder if your insurance companies may still have been able to to do soft credit inquiries even with a credit report freeze because they were businesses that you had a relation with?

I did just look at my Experian credit report and I see my insurer State Farm does appear to be doing periodic credit report pulls (prior to freeze)
Quite possibly, as I've been with the same insurer since before I froze my credit files. This gives me another idea to recommend to my elected representatives: Insurance companies should not be allowed to raise insurance rates just because an insured has frozen credit. They should at least be required to notify insureds that their credit is about to be checked so that the insured can unfreeze for them.

tenkuky
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by tenkuky » Tue Sep 12, 2017 9:49 am

I just called SF based on this thread, and they said they don't, but to call them if something is off
I'm going to proceed with the freezes this week, good to know about these loose ends

blevine
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by blevine » Tue Sep 12, 2017 9:54 am

Your existing creditors can continue to access your credit reports.
Not sure if that would count auto/home owners insurance, I assumed anyone who had access in the past continues to have access,
but that may not be true in all cases. I use Allstate, they certainly never asked me about getting access, whereas bank new credit card apps
did result in a bank contacting me to ask if I would thaw the freeze.

deeg21
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by deeg21 » Fri Sep 15, 2017 8:42 pm

We froze our credit in 2014 after a different (and very large) data breach. However when we switched insurance from 1 vendor to another, the new vendor was able to access my credit report. Don't know how much of it he could access, perhaps just the credit score? Took me by surprise, but I have the pdf's documenting that we indeed did freeze our credit (and not a soft freeze either).

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oldcomputerguy
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by oldcomputerguy » Sat Sep 16, 2017 6:07 am

Copper John wrote:
Mon Sep 11, 2017 11:13 pm
I recently froze my credit file at all the credit reporting agencies after the Equifax fiasco. I have since read several reports from people who froze their credit reports in the past and had their auto insurance premiums increase. It seems their premiums were partly based upon their credit scores and because their insurers could not pull credit reports upon renewal their insurers raised their rates. In some cases the insurers did not notify them nor were their insurers always able to tell them what credit service they utilize.

https://www.computerworld.com/article/2 ... miums.html


For those of you who have had credit files frozen for a number of years, have you encountered this issue and if so how have you dealt with it ?
I froze my credit at the Big Three back in January of last year. Since then I've had four auto insurance invoices from my provider. Of those four, the last one did have a 7% increase, but when I asked, the provider said that it was an across-the-board increase at their company. (I'm inclined to believe them; I've had them as a provider with no problems for my entire 44-year driving career, plus it's been a long time since they have had any significant rate increases.) So my rates don't seem to have been affected by the freeze specifically.
Anybody know why there's a 20-pound frozen turkey up in the light grid?

afan
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by afan » Sat Sep 16, 2017 7:47 am

As far as I know, and I cannot cite a source, freezing your credit does not affect the ability of companies that have already extended you credit to monitor your report.

I have frozen credit in the past with no effect on existing accounts.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

azurekep
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Re: Freezing Credit Report - Effect on Auto Insurance

Post by azurekep » Sat Sep 16, 2017 2:48 pm

Rupert wrote:
Tue Sep 12, 2017 9:25 am

This gives me another idea to recommend to my elected representatives: Insurance companies should not be allowed to raise insurance rates just because an insured has frozen credit. They should at least be required to notify insureds that their credit is about to be checked so that the insured can unfreeze for them.
As would be expected, there are actions afoot wrt credit bureaus. It wouldn't hurt to follow any entities involved to make sure some of these less talked-about issues are covered.

https://www.reuters.com/article/us-equi ... SKCN1BQ16B

This particular link involves free credit freezes.

I've seen other efforts that are about creating a uniform breach notification system.

Disclaimer: This is intended solely to be a general heads-up to keep following the news (if so interested) and is not intended to be a discussion of pending legislation or any political aspects of credit bureau reform.

(I hope that covers it. ;) )

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