AAA Insurance Costing Based on Credit Score

I have always taken issue with AAA credit scoring for several years, but never took any action to confront this company about my insurance rates.. although several years ago when I was about to change companies my AAA agent managed to move my wife and I to another group, in which case lowered my six month premium. However I think it is time to have the public question their pricing practices.

I can’t recall what my six month premium was in June of last year, 2018, but at the time I also had a new RV that was added to our two car policy for 2018.. in any case my wife passed away in August of 2018 so I called AAA to have her removed. Within a week I received a bill for $400.00 from AAA. I could not imagine what this was for so I called and I was informed that since they removed my wife they were using my credit score..8 hers was 9. Bare in mind this was the middle of 6 month billing cycle. This would, on a 6 month renewal, increase my cost six month cost by $800.00 to insure one person with 3 vehicles.

I asked how could my wife’s score be better than mine when she doesn’t work, all her money comes from me, and she is the one with several consumer retail cards.. I have only 2 credit cards that I have had for many years each.

In any case I wrote to Lexis/Nexis, the company that supplies the credit reports to the insurance companies and received the 60+ page report. I reviewed the report and could find nothing negative.. I called LexisNexis and spoke to an agent. We went over the report,  and specifically one page. This page contained the summary information that was important and he said that there was nothing negative contained in the report..

In the meantime I contacted Progressive online and purchased coverage for $1,017, I think it was for the same coverage AAA wanted $1,500+/-

I contacted my AAA agent to again confront him about the ridicules score and reasons. I had only 2 credit cards and never carried any balances from one month to the next. had two car loans in 2018 that were paid off.. Never ever been late ever paying my bills, loans etc..

After a couple days he called me to let me know that he talked to a main office and got my credit score changed.  The result was a new six month bill for $1,200+ . This was still roughly 20% higher than Progressive. By the way Progressive also covered car rental and AAA did not.

More information on my subsequent contact with Progressive after I received my policy in the mail.

I noticed the same 4 codes on the last page of packet regarding my credit report. I called again and talked to an agent and I explained my situation and could not understand how they could come to the conclusions.. He reply was , they only use the credit report to determine creditability and has nothing to do with the insurance coverage rates.

Now this is totally different than AAA and for that matter what has a persons credit report got to do with risk anyway beyond ability to pay bills?

I thought that DRIVING RECORD AND CLAIMS determined a persons cost of coverage.

AGAIN

What brought this subject up again since a couple months ago I thought I had this all settled, but no…. I just received my homeowners renewal and again I have the AAA Credit reporting page with the same 4 codes and a score of 8..

Prior Score 746, Current Score 752, Rating Score/Level 752/8, Score Factors 62, 53, 77, 58

Now I will respond to each code with facts:

53 Number Banks/National Revolving/Open Accounts : I had two up until November 2018 at which time I added another card at the recommendation of Experian. Just how many is too many?????

58 Relationship of Balance to High Credit on Bank/Nat or Revolving/Open Accounts: In September of 2018 I paid off the two auto loans I had. Further more I have never paid one penny in interest for carried over balances on the two credit cards or way back then I may have had a Macy’s card for a short period, but never had a carryover balance.

The highest balance on either of the two credit cards was for airline ticket that was $14,000.00 back in April of 2018, but was paid in full prior to the due date..

So why is this on the report????

 NOTE: Credit card companies should only report carried over balances not current. This brings up the Bank of America that is so stupid, if you pay you current balance early they will still debit your account for the same amount when the auto-pay is scheduled even though there is no balance due.

62 Length of Time Established: Of the two cards I had up until November 2018, the newest one was established in 2009. They got me on this one since I received a new card in November 2018 at the suggestion of Experian people.

77 Relationship of Loan Balance to Amounts: I have had no loans since September 2018 so obliviously AAA did not bother to get a current report.

The INSURANCE SCORING AND FAIR CREDIT REPORTING ACT NOTICE:

This page that begins with  “As part of our normal underwriting and rating process, we rely upon consumer credit based insurance scores to determine qualification for our lowest rates”

I just checked both my credit card suppliers and both show my score as of 25 February to be 836 and both show that it dropped 2 points since the last update. They both show an update scheduled for 4 March 2019..

My point is that AAA use of the information is obliviously being miss applied or is not understood by those that are supposed to be using it and on top of that it is nothing compared to the driving record and claims reporting.

If we take the group 60 years and older  I think you would find that a large percentage of this group has little or no mortgages have stabilized spending habits and in general by the way AAA uses the credit reports would have everyone less than the highest rating for charging insurance rates.. or applying discounts..

Myself personally have only had one claim for a deer incident back in 1996 maybe, not real sure of the year and as for my wife she had two separate incidents not of her making several years ago and another in a vehicle we were not driving about 2 years ago.

I have been with AAA for 33 years and I fail to see where I am an insurance risk in the automobile and I fail to see what my credit report has to do with my home owners insurance.   

BOTTOM LINE

I contend that AAA is misusing the credit report information to justify low ratings for customers in order to justify charging higher rates..

Michigan Tax .. Where Did It GO

1 February 2019
SUBJECTS:
Michigan Roads
Grants for Private Interest Projects
First lets cover this on-going issue of the Michigan road conditions and the conversation about how are we going to fund these repair projects.
I am going to go back to the years just after moving into the Ann Arbor area. Lets’ say, sometime shortly after 1997, It could have been 1998. The subject of road conditions was a buzz in the news and I recall at that time, the Michigan government, introduced an additional tax on gasoline to pay for fixing the roads.. So my question is, “what happened to that money?” Did it disappear or has our elected officials managed to redirect the funds for some other purpose over the years?

HUMMMMM does this sound familiar? During the 2018 gubernatorial campaign we heard, “I am going fix the roads”. Not exactly the words used by the winning candidate, but close enough..
This morning I was watching the FOX 2 news and guess what? Their’re talking in Lansing about a $0.40 Tax on a gallon with some qualifier about over the next 10 years.
What happened to the tax levied back in the 90’s that was supposed to maintain the roads.. Our Michigan government should come clean and tell the public how much of to-days gasoline cost per gallon is TAX.

Grants
I am going to tell you readers what got me fired up about something I was not aware of prior to an incident that happened to me, I think back in 2016.
I had stopped at the local grocery store in Dexter Michigan and as I was walking towards the front door I noticed a lady sitting at a table with a sign that had a picture of an old house that I recognized was located just outside downtown on the west side. As I approached the lady asked if I would like to donate to help restore this farm house that had been given or donated to the city. There was a group of people working on the restoration project. Going on to say that it was an old farm house that they wanted to restore as a historic part of the community or something to that affect. I said sure and as I was reaching for my wallet the lady went on to tell me that they were so happy to have received a grant from the State of Michigan of $75,000.
My immediate response was “now you have made me mad. …my tax dollars should not be used to fund private interest projects.”.
I still gave $20.00 to help with the project, but using my or any persons tax money for private projects is something that should not be permitted. The tax payer in Traverse City has absolutely no interest in a farm house being restored by a group of individuals in Deter Michigan. Nor should it be any business of our politicians.
The reason I am venting my irritation about such stupid expenditures of our tax dollars is because this past week they were interviewing a lady on the channel 2 news that was speaking about the church where Aretha Franklin used to attend. Saying that they were planning to put a mural/painting on the side of the church and they were accepting donation to fund the project.
She also went on to say that they were applying to the State to declare the church as a historic site or whatever, so they could apply for a grant to cover some of cost. Here again why should the tax payers of Michigan be strapped paying for this special interest groups pet project..
Grants for private groups for anything that does not have potential benefit to the general population of this state, the United States or the world should not be placed on the desk of our Politian’s.

TAX DOLLARS collected from the citizens of this state, or any state, should only be used to finance the goods and services provided to the general population of this state, Not special interest groups with pet projects.
Seventy five thousand to restore a house that a handful of people even care about, would be better spent to “fix the damn roads”. Not to mention the coming request to foot the bill of the church in Detroit to commemorate Aretha Franklen.. It is nice that people want to remember her, but this should not be a billed to the tax payers of this state..

RUSSIA’S MEDDLING

17 December 2018

Russia’s meddling in the 2016 election. Really? The government of the United States of America has meddled in the elections of foreign governments since who knows when. I am really shocked at the arrogance of our elected officials suggesting that we should waste our elected official’s time and our tax money to prove or disprove this alleged activity. Even wi going back to after the end of world war II, let me bring this to your attention… Taken from : https://www.britannica.com/topic/Radio-Free-Europ

 “The CIA ended its involvement in Radio Free Europe’s financing and operation in 1971, and control was transferred to a Board for International Broadcasting appointed by the U.S. president”.

More Information: Available to anyone on the internet…

RADIO FREE EUROPE. 

RFE/RL MISSION
COMMUNIST RESPONSE
THE EARLY COLD WAR YEARS
DÉTENTE AND THE COLLAPSE OF COMMUNISM
BIBLIOGRAPHY

Radio Free Europe (RFE), established in 1949, and Radio Liberty (RL), established in 1951, were the most successful propaganda vehicles of American psychological warfare during the four decades of the Cold War. The radio stations run by the United States government contributed to a great extent to the survival of democratic values and desire for freedom among the people of the Soviet bloc countries.

In June 1948 the National Security Council adopted George Kennan‘s proposal and created a new department within the CIA, the Office of Policy Coordination (OPC), for conducting covert operations. Kennan’s draft stated that these operations should include propaganda, economic warfare, subversion, and assistance to underground resistance movements and refugee liberation groups. The actions had to be so planned and executed that the U.S. government could plausibly disclaim any responsibility for them. In a memorandum on 29 October 1948, Frank G. Wisner, the first head of the OPC, outlined four functional groups of the office, the first of which was in charge of “psychological warfare,” including the use of the press and radio.

The communist takeover throughout the Eastern European region in 1948 accelerated the organizational work. The National Committee for a Free Europe (NCFE), created in early 1949, assembled prominent Eastern European émigré politicians and intellectuals and established a publishing division, Free Europe Press, and two broadcasting divisions. RFE targeted the Soviet satellites in Eastern and Central Europe. RL broadcast in Russian and in the languages of the republics of the Soviet Union. The recruitment of the editorial and research staff started in 1949.

Now let’s remember that the internet didn’t exist back then, so open air radio was the only means to distribute or interfere in the lives of targeted groups or countries. Today the internet is the prime means of perpetrating any covert activity. So what is the difference between the US governments attempt of swaying peoples opinion back then using the radio or, even if they can prove Russia’s meddling, Russia’s use of the internet?

Bottom line,,,,,, the answer is, “NOTHING”. Our elected officials are just trying to sway the voter’s opinion for the next elections when none of this has anything to do with anything inside the United States. Our politicians, both Republican and Democrat, should get on with working on the countries’ issues and stop this stupidity.

If our lawmakers had any brains they would pattern after China:   Block communications from coming in from unfriendly sources if it bothers them so much. But hey, then we get into the FREEDOM of SPEECH… “we can’t have it both ways…or can we?”

NEW SUBJECT but in the same line of this topic. When I was involved with a US Corporation in the middle east, our company was required to sign a document declaring that it would not support any black list products or suppliers, by the host country. I found this all so stupid because our own US government published a black list of countries that US Corporations were not permitted to sell to or have activities with. SO, OUR GOVERNMENT CAN HAVE BLACKLISTED COUNTRIES OR ITEMS THAT CONNOT BE EXPORTED TO SPECIFIC COUNTRIES, BUT OTHER COUNTRIES CAN’T DO THE SAME? Just what does the government, elected by the people of United States of America, think it is?

The Presidents Calls for Tariffs

I want to express my opinion regarding his call for 25% tariffs on goods from China.

First of all, the news media as well as those associated with all the different forms of media that proclaim to be “experts” should bow out of the conversations all together.

In the second place, does anyone believe that our representatives in both houses of government would vote or support instantly raising the cost of living for the American Public by 25%?  We may not give them much credit these days or for that matter for years of being able to act like responsible law makers. But this just isn’t going to happen.

The president has ulterior motives for suggesting such action in order to get something else accomplished. Whether it’s South America, Europe, or Asia, everyone should just back off from any speculation. Our government is notorious for throwing up smoke screens or outright lying in order to manipulate the US people and foreign governments.

I fully expect this subject to fall to the wayside. I’m involved in the importing goods from China and when I’ve reviewed the bills from the freight companies and see generally see 5% or less duty charges. I have thought to myself we should charge more. However, when you take the whole process into account, the imported goods sold in US stores are subject to Sales Taxes, Income tax, social security tax and pay our salaries. The earned incomes are spent paying for homes, education, cars, entertainment, and food. So indirectly the US government gets it money.

The big picture says there is no reason to raise import duties. What is the purpose? There isn’t one that makes any sense; is there?

So the president can boast he will decrease the trade deficit by $150 billion. Be careful of numbers… so in-turn he will increase the cost of living for all Americans and cripple the farmers that export to one of the largest population in the world.

Would the president be willing to face the anger of the American public? I really don’t think so.

 

Have a Nice Day J

How far back was it that bank’s were for the most part deregulated?

Basically 1995 under the Clinton administration. Not only did this start the loaning of money in excess of value, but allowed banks to jump into the securities business. The prime rate was around 7.5%. between 1995 thru 2000.

If you recall you probably received many offers from banks and lending intuitions in your mail to refinance your home at a lower interest rate and could get as much as 130% of appraised value. I myself took advantage three times between 2000 and 2004 , refinanced my home at the time at the lowering interest rates. I advised anyone who would listen to not go for taking money out because most of the loan offers were at the rates offered with a 5 year balloon. I believe most people who took the lending intuitions up on these offers never considered this fact and believed the low interest rates would stay steady. Between 2000 and 2002 interest rates had dropped from about 7.5% to 4% the rates stayed pretty much steady until mid 2004 when these loans were starting to come to the end of their 5 year balloons and then the Prime rate started a steady climb from 2004 thru mid 2006 topping at about 7% the housing / bank crash in 2008. Bailout program of 2009 of the automakers. A whole lot of things fell apart because of the banking industry pulling a fast one at the expense of the average and lower income Americans.. Don’t get me wrong a lot of the useless debt was sold to the European financial intuitions.

On top of all the disaster caused by our banking industry, banks were finally permitted to offer investments in the stock markets.. so together with the falling Federal prime rate that began in 2007 through 2009where it hit bottom we now have another pot doomed to failure.

So now we have banks that can borrow money cheap the offer .01% to their depositors and Oh! By the way, we have these stock and mutual funds you can put you money into to make some money,,, maybe.
So now we have the situation where we as depositors make nothing on money we keep in the us banks, but the banks have full use of our money to make home loans, car loans etc. at 6 to 20%

Banks should not be allowed to pay less or next to nothing to use your money than they would have to pay to any other capital source. At worst case they should have to pay Prime Plus 1 or 2 % by law..

Another idea I had is that our federal government should set up a savings program for people over 65 years of age to deposit their money and earn 6% ..

This aging group has been steering funds into investment and you heard it here first this is another day of reckoning that is on the horizon.. Senior citizens should not have to risk their hard earned savings for retirement in the stock markets. The only people making money coming and going are the brokerage houses and banks.