Unfair Treatment from Auto Insurers


Unfair Treatment from Auto InsurersIt is mandatory for car owners in the U.S. to have auto insurance. But many Americans feel that because of this law, their rights as policy holders are being abused. In the past, if a driver has no history of traffic violations he is being rewarded by his auto insurance company in the form of discounted monthly premium. He is considered a responsible driver by the auto insurance company because of his untarnished driving record and on time monthly payments. But things have changed after insurance companies require a background check on the credit history of applicants.

The economic crisis has forced many American families to have credits in banks and loans. Many families lost their jobs and are struggling to make ends meet. Because of this, they are also struggling in paying their credit cards. It is regrettable that some auto insurance companies are cancelling people’s insurance policies just because they have credits on their credit cards even they don’t have late payments on their monthly premiums. This unfair policy that is being practiced by auto insurance company nowadays is a violation of the rights of the American people. This is very un-American. Considering that the U.S. is a powerful nation that works hard to implement the rule of law in the four corners of the world.

The practice by auto insurance companies of prioritizing and checking of the clients’ credit history instead of the clients’ good driving records is not only annoying but also unusual. Auto insurance companies are now rating their clients based on their financial standing and not on their driving records. In the past, auto insurance companies requires a credit check only after when you are going to  sign  your policy, not when you are asking for a quote. If you have credit card payments in the bank, they are charging high monthly premium and the worst case scenario is denying you with coverage.

Most auto insurance companies think that if you are indebted, you are a bad driver. After checking the credit history of applicants, they usually approve those who have no credits in banks and cooperative. This is a bad precedent. A person’s financial standing in the society should not be the basis for approving auto insurance applications. Although there are some auto insurance companies who are not doing this practice, they are only a few.  You have to dig deeper and make a full research to find out the auto insurance company who is fair and not judgmental.