Insurance comparison sites- search impact

InsideInsurance

The_Boss wrote: »

So your example is that of two small fee low risk accounts? If you dont pay, the insurer withdraws the service they are supplying. It's not a fair comparison to 'proper' credit agreements such as loans, credit cards, mortgages etc. The fact that they may use these irrelevant scores concerns me if they are not using them in conjunction with application data so if you could name names that would be useful in knowing who to avoid in future.

They are not using it to judge credit risk, they are using it to judge claim fraud risk which then relates to premium charged irrespective of if you are paying it in full up front or using credit to pay by instalments.

Basic theory that if your financially struggling you may be more tempted to sell your jewellery but then claim it was lost or stolen to double your money. Alternatively get talked into a crash for cash where you stage a minor accident, you are the at fault party, the others exaggerate injury and you share the insurance payout.

Evidently the total premium is calculated using application data along with the credit score. At the time of introduction to both the credit score was a relatively small impact, from memory up to + 7.5% but evidently as data is collected and so analysis can be done this will have been refined so could well be higher or lower than it was at introduction.

aldredd

InsideInsurance wrote: »

There is no universal credit score like there is in the US but credit scores as sold by Experian, Equifax and CallCredit (not sure why you used the consumer website name for them) are used by some smaller companies (eg insurance companies).

Not quite sure why you felt the need to pick up on this.
It's how most people will know the company by - doesn't really matter, does it?

rokel

I too have made enquiries re car insurance via Go Compare. Since then I have been told by my CC company that my rate is increasing by 5% - coincidence? I checked my Credit Rating with Noddle (as suggested by my CC company) and found 38 credit searches, obviously all insurance companies. when I told the CC company they said that could be the reason for the rate increase. Now I read here that this wouldn't be the case so how do I sort that out? Is the CC company duty bound to tell me the actual reason? any advice would be appreciated.

aldredd

^ I wouldn't have thought so

Your CC company has no visibility of your insurance searches. If, as has been suggested, some companies use the CR's internal score, and that does happen to factor in insurance quotes, then I would have thought you'd see a new search on your file from the CC company.

The_Boss

rokel wrote: »

I too have made enquiries re car insurance via Go Compare. Since then I have been told by my CC company that my rate is increasing by 5% - coincidence? I checked my Credit Rating with Noddle (as suggested by my CC company) and found 38 credit searches, obviously all insurance companies. when I told the CC company they said that could be the reason for the rate increase. Now I read here that this wouldn't be the case so how do I sort that out? Is the CC company duty bound to tell me the actual reason? any advice would be appreciated.

Yes, it is a coincidence.