Insurance News

More than 8,000 Oregonians use credit scores to lower insurance rates

The Oregonian - Business, reposted.

Published: Thursday, January 20, 2011, 3:48 PM Updated: Thursday, January 20, 2011, 4:54 PM

Oregonians saved $800,000 last year under a new law requiring insurers to lower premiums if a customer's credit score improves, state officials said Thursday.

More than 8,000 customers took advantage of the new Oregon law, the Oregon Insurance Division said, saving about $100 per request.

The law gives customers the right each year to ask their insurer to re-rate their homeowners or auto insurance policies based on their credit history. Insurers cannot, under the law, increase premiums if the customer's credit score got worse. But they must lower rates if the customer's credit history improved.

"What do you have to lose by asking, really," said Cheryl Martinis, spokeswoman for the division, which gathered the data from 11 large insurers.

Senate Bill 377 allowed insurers to take a customers credit history into consideration when it determines coverage or sets rates for new policies. But it barred them from using a credit history or an insurance score at renewal to adjust a policy, unless the consumer asks.

Insurers were not required to notify customers of the change, though State Farm has included a notice about it on all new policy declarations, company spokesman Jeff Aeschliman said.

Consumers with questions about insurers' use credit scoring or other insurance issues can contactthe Insurance Division at 1-888-877-4894.

-- Brent Hunsberger

Source: http://www.oregonlive.com/business/index.ssf/2011/01/more_than_8000_oregonians_use.html

Consumer Reports Article: Are low-cost replacement bumpers safe?

October 2010

Excerpt:

"Bottom line

Don't let your insurance company pressure you into using aftermarket collision-repair body parts, especially safety-related ones. If your car has already been repaired, check your invoices or ask your insurer to see whether aftermarket parts were used. If knockoffs were used, demand that they be replaced with original equipment."

Bulletins/Statements:

Acura "American Honda recommends that all maintenance and repairs are performed using Acura recommended procedures and Acura Genuine parts..."
Honda "Other parts - whether aftermarket, counterfeit or fray market - are not recommended..."
Toyota: Approved and Prohibited Repair Methods

Read more about aftermarket parts: Aftermarket Parts Can Be a Safety Hazard