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  • Report: #518160

Report: PROGRESSIVE INSURANCE

Reported By: Mick (Pensacola Florida)

USA

PROGRESSIVE INSURANCE Progressive finds innovative way to rip off customers, Internet

*UPDATE Employee... Credit Scoring

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PROGRESSIVE INSURANCE


Internet
United States of America
Phone:  
Web Address:  www.progressive.com

Category: Car Insurance


Submitted: Sunday, November 01, 2009

Last posting: Sunday, November 22, 2009

In a page straight from the bank credit card industry, Progressive has instituted a new way to rip off customers. During the past year I opened an overdraft protection for my checking account as a precaution against outrageous bank fees should some mistake ever occur in my account.  This overdraft protection has never been tapped and is limited to $3000.  Progressive used this new "revolving line of credit" to raise both my motorcycle rates and RV rates.  The RV rate increase was 28%.  They claim anyone who opens any revolving line of credit for any reason presents a higher claim risk and the state of Montana allows this.  I can't believe this. An actual credit score would be a better measure but then they probably wouldn't be able to trap as many people in this loophole. As usual with big companies, my complaints fell on deaf ears.


Be careful with this one folks.  Any time you might be in a department store and the nice lady says "10% off your purchase today if you open an account with us" or you find a new lower rate credit card, you just became a more dangerous driver and raised your insurance rates.  Oh yeah, I asked them if I closed that account, would my rates revert back, no such luck, chump.


Any good lawyer out there looking for a good class action?




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Credit Scoring

Anonymous - MESA (U.S.A.)

POSTED: Sunday, November 22, 2009
99% of insurance companies look at credit in order to determine what kind of risk they are taking on when they allow you to purchase insurance with them. Progressive, along with most other companies, really focus on what is inside the credit report, and not what the score is. Zooming in, they look at what credit you have open and how long it's been open.

As far as the state of Montana allowing this, all states except for CA allow credit to be run for policies of any sort. All rates have been accepted and approved by the Dept of Insurance in your state. If you want action, go to them to get something changed in the system. Even though a lot of people don't like that insurance companies look at credit, I am one of them, statistics show it is still a good indicator of a risk.



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