My motorcycle is insured by Foremost Insurance Company. They have insured it for the last two years. They had rated me "A", their best rate.
I moved from Florida to Tennessee in August 2005. They told me they had to cancel the Florida policy and re-write it for Tennessee. OK, no problem. They re-rated me "B" which caused a significant increase in the premium. They use ChoicePoint for their rating information. I requested and received a copy of the information used from ChoicePoint. There were NO tickets, NO violations, NO accidents, NO claims to ANY insurance company, and NO negative issues from the credit bureau (Experian).
What Foremost did get from ChoicePoint was I did not have enough debt. They reported "[Not enough] # OF NON-CLOSED ACCOUNTS", "INSUFFICIENT INFORMATION ON BANK REVOLVING ACCOUNTS", "INSUFFICIENT INFORMATION ON OIL COMPANY ACCOUNTS", "INSUFFICIENT INFORMATION ON SALES FINANCE ACCOUNTS".
I planned my retirement to start debt-free. I achieved that goal. I retired at the end of 2004. I would think this would indicate that a person handles his finances very responsibly. However, Foremost Insurance Company and CheckPoint do not see it that way.
The following is the text of an email I sent to Foremost after attempting, and failing, to get them to rectify this injustice:
From my perspective, this is what the corporate attitude seems to be:
FOREMOST: "We see, from the information provided to us by ChoicePoint, that you are not spending your money on interest for credit cards, installment loans, etc. Therefore, we intend to relieve you of those monies that would have gone to interest by rating you lower so we may increase your insurance premium. This may be unfair, even unethical, but it IS legal. That is what matters most to us."
The main point here is if you have no tickets, violations, accidents, or claims and do have excellent credit but are not in debt you may want to make sure the insurance company you are considering does NOT use ChoicePoint to provide your insurance score. They WILL cost you money.