I was shocked last week when I received notice from Horace Mann Insurance Company (HM) that the premium on our two cars was increasing 16.3% due to a change in my “tier score.” My shock is a result of my not understanding how my credit score is related to my ability or willingness to pay my monthly premium. Credit worthiness makes sense when purchasing a car that if the payments aren’t made will result in the expense and bother of repossession, but for car insurance it would be a simple matter of sending me a note that my insurance has lapsed if I don’t pay my bill. I am paying a month in advance so HM is out nothing if I don’t pay and the insurance is canceled within that thirty-day window.
In just the past year or so, we incurred an increase in premium because a deer ran into our Buick. A few months ago there was some confusion in my rating, that while changed, the mistake was not refunded. Since I retired in February 2011 we were hit with an increase because I no longer use either vehicle for “business” driving. The funny thing is that being retired means I may be out on the streets and highways more than ever. I questioned, but did not revolt at those problems, but I’ve reached my limit.
Particularly, I’m upset that the Horace Mann Company is paying such attention to my tier (credit score), while negating my forty years of loyalty. In that length of time I’ve never been late, let alone missed a payment. That loyalty should be much more important to the company than a tier-score that predicts the odds that I might miss a payment.
I am sufficiently upset that I spent time the past several days inquiring of other insurance companies about rates and terms. While I doubt that their rates and service could match, let alone exceed what I’ve received from HM, I am willing to take that chance in order to make my point over the tier rating.
No comments:
Post a Comment