The Identity Theft Protection Guide

7) Which of the following is tracked by the insurance industry to help make underwriting decisions and set rates?

a history of insurance claims you have made
the number of claims made on your house before you moved into it
who you loan your car to
your credit score
all of the above

Every claim you've filed in the past five years is tracked by two large database companies, as is every claim filed on your house and your car. Car reports also include a list of any driver's you've ever been associated with, either by living at the same address or from previous insurance applications and claims.

In addition, some states allow insurers to consider a score based on your credit report. The argument in the industry for the use of scores is that there is a demonstrable correlation between your financial behavior and the likelihood that you will file an insurance claim. Unfortunately, drivers with absolutely no moving violations or accidents have had their rates raised or were denied coverage based on the score derived from their credit history. Given this over-interpretation, several states have pushed back on allowing insurance companies to consider scores when underwriting policies. (See www.namic.org/scorecard/03InsScoring.asp for a summary of state laws.)

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