Progressive Insurance - Rate Increase Based on Credit Not on Perfect Driving Record
Coverage Rates - Complaint
BRIGHTON, COLORADO -- Forget the loyalty... my rates have continuously increased the last 3 years a few dollars a month and then jumped $12 monthly this last renewal period. I have all the discounts: 5+ years with same company/insurance, multi-car, no accidents/tickets last 5+ years, same cars (all old, newest 2001), same driver and usage, have anti-theft on 2 cars, have electronic monthly payment from checking account and paperless billing, etc.
So when I called to find out why my premium had increased, the reason given was that my “credit score” had gone done a little. I have never been late on anything and they are raising my rates based not on my driving record (perfect), or on vehicles (old), or on claims (none) but on something not related at all to my ability to function as a safe, loyal driver. Because I bought a house in 2009 and have 3 credit cards (Kohls, Homedepot, Chase) I am being punished by Progressive for using credit I am qualified for and pay off quite regularly.
So Progressive's thinking is: if the client is stretched out a little in credit, lets charge them more so the hole can get deeper. Not reward them for being the “perfect” customer.