Insurance Scam

Insurance or Extortion ?

I recieved a packet in the mail from Allstate Insurance. I have been with Allstate for many years and had various policies with them such as car, house, motorcycle, renters, etc. The packet basically said that my policy was being raised and I was being dumped to another company. So I made a call to my insurance agent and asked to explain what this meant. My agent explained that due the fact that the government will not let insurance companies just keep raising rates to cover losses, the insurance companies have decided to raise the rates of people who have only one policy and/or dump them to another company.

My agent did state that he could help me get a policy that was close to the same amount if I let him pull my driving record. Then after he took a breath he also said he would need to pull my credit record . I asked what does my credit have to do with buying an insurance policy. He said, “Insurance companies have discovered that people with bad credit tend to make many claims.”

I find this very interesting and the timing could not have been more perfect to point the finger at insurance companies. You see, I cut up all three of my credit cards and closed all three accounts and got into a plan to pay off my debt. This of course put a flag on my credit activity as I am opting out of the system.

All I can say is watch your back because the insurance companies are now watching your credit history, but did you give them permission?