Is it fair for insurance comp to set your rates according to your credit rating?

I HATE THAT and no, i dont think they need to be looking at my credit. This is why i feel like this:





1. you are paying the insurance company in advance; you are not asking for credit





when its time to pay for coverage...you pay before you get covered so its not 'credit'





2. some folks might say because they want to prevent insurance fraud.....and that's cool HOWEVER....my credit history has nothing to do with insurance fraud...so again i say they have no business looking at my credit history





It is just my opinion that they do that as a way to make you pay HIGH monthly coverage

Is it fair for insurance comp to set your rates according to your credit rating?
When they refer to credit, I'm not sure they mean your FICO score. I think they mean your CLUE report. The CLUE report is a report that shows how many accident claims you've had with other insurers.





Just like your entitled to a copy of your credit report, you're also entitled to your CLUE report and I'll bet you've never ordered it before right?





Get yourself a copy of your CLUE report. Google it.





If the insurer does actually look at your FICO credit score to determine rates it's stupid, but that is their right.





It's also not fair for men to be charged more than women drivers. It's also not fair for first time drivers to pay higher rates based on the assumption that under 25 drivers get in more accidents. How about your rates dropping when you get married or have kids. That doesn't seem fair either. But they do it all the time.
Reply:"Fair" is a matter of opinion. It is legal.
Reply:Having good credit shows that you're a responsible person. Being responsible means you are less likely to file claims.





It is fair, and it makes good financial sense for the insurance companies. Remember they are businesses.