Co-op Insurance The Co-operators, Co-operators Insurance, Co-op Insurance Rate Increases Due to Credit Score? Thought It Was Not Allowed? Why Are They Using Credit Scores? Is it Legal? Guelph, Ontario

My insurance with this same company The Co-operators Insurance Company renews in early May.  Last year the rates on our house insurance went up as well and when I called in April to talk to our Co-op agent about it, the agent was away on a big trip to Switzerland. We renewed too but will definitely be moving our insurance this year to another company.

A fellow from Calgary who blogs about insurance commented on credit scoring and Co-op Insurance when it was introduced.  It is legal but he made a good point because it threatens our privacy. This is, more or less, what he said in his blog.

The Co-operators Insurance Company will be check credit scores and use the information to determine what rates they will charge for home insurance. If you refuse to let them have access to your credit rating, Co-op will assume the lowest possible score which will result in a higher premium. The insurance company sees a relation between bad credit habits and bad home upkeep which supposedly makes you a higher risk for home insurance.

CTV in Calgary also did a story on this concern.

The Co-operators Insurance Company will be checking the credit rating of its clients and will even use the information to help set rates for home insurance.

The company recently sent out letters informing customers of the change in policy. The letter warns anyone thinking of refusing that "if we do not have a credit score, we must assume the lowest possible score which may result in a higher premium."

The move is not in violation of the privacy act because customers are being asked to give permission to the company before it accesses the information.

I guess we have to live with it or go elsewhere?