Car insurance costs moderate in Minnesota

  • Article by: Jennifer Bjorhus , Star Tribune
  • Updated: November 13, 2013 - 10:20 PM

But a consumer group’s study suggests that rates rise faster in states like Minnesota that don’t require regulatory approval of increases.

  • 7
  • Comments

  • Results per page:
  • 1 - 7 of 7
mikeptNov. 14, 1310:11 AM

I got an insurance quote last March from USAA. The cost was better than my policy with Am Family. When I returned from a trip in April, I called USAA to make the switch. They told me the rates had changed. They did, by 100%. I stuck with Am Fam as their rates have never fluctuated by such an exorbitant amount and their service is exceptional.

2
1
sek2undrstndNov. 14, 1311:03 AM

In order to understand the difference between states we need to know more information. In addition, I know many communities have been spending tax dollars to reduce the rate of accidents at different intersections. Along with the change in auto technology, traffic improvements also help to reduce claims.

0
0
gailycNov. 14, 13 2:23 PM

Here's something I've found - your credit score will be factored into your rates. Regardless of having zero accidents/claims, traffic tickets of any kind, 13 year old car and being 55, my insurance went up 80%. My credit took a hit in the Great Recession. There's something I did not know until it happened. Fortunately, I received a fabulous rate through my credit union, which came in lower than when I started.

1
0
raineyrooNov. 14, 13 3:20 PM

"Here's something I've found - your credit score will be factored into your rates." That was one of the things that bothered me when I lived in Minnesota, gailyc. When I got married to my first wife, my insurance went up due to her credit history. There is no correlation between someone's credit history and their driving records. It's nothing more than a way for insurance companies to pull more dollars out of your pocket. While I now live in Irvine (SoCal), which has it's issues, at least insurance companies cannot discriminate against people's credit ratings or zip codes.

1
1
mkuldaNov. 15, 1311:00 AM

The fact is that drivers with lower credit scores file more insurance claims than those with higher scores. And most importantly, the use of credit scoring is mainly to give discounts to those with less risk of filing a claim. The flip side of that is that when insurers give discounts to those that are less risky, it raises the premium on those that are more risky. In the end it is not about making more money but more about re-allocating the premium raised based on who has the most risk. I know it doesn't sound intuitive but study after study have shown that it is an undeniable truth that lower credit scores equals more insurance claims.

0
1
raineyrooNov. 15, 13 1:59 PM

"The fact is that drivers with lower credit scores file more insurance claims than those with higher scores." Says the person that works for an insurance company. The data gathered in this study is highly suspect. Not all insurance companies charge based on credit scores. Google it.

0
0
mkuldaNov. 15, 13 5:08 PM

It was not one study done by an insurance company. It was many studies done mostly by insurance commissioners. I've read more than two dozen so far. Look up the ones done by the state of Missouri and the state of Texas. Both went into the study trying to find that credit scores were used to discriminate and both had to admit that both credit scoring was completely statistically valid (proving that lower credit scores led to more insurance claims) and that it was not possible to discriminate based on credit scores.

0
0
  • 1 - 7 of 7

Comment on this story   |  

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT