Insurance Companies Charge More if You Have Poor Credit
The United States Supreme Court ruled Monday in a case about insurance companies notifying you that you’re being charged more for insurance because you have a poor credit rating. The Court ruled that Geico and Safeco insurance companies were not liable for not telling customers their insurance rates were higher due to their credit ratings.
The Fair Credit Reporting Act requires insurance companies and other businesses to notify customers who are charged more because of their credit ratings. This is just another example of how difficult it is to rise above an economic shock such as unemployment or surprise medical bills.
The Court held that a company’s conduct must be more than careless; the company must be reckless in failing to tell customers that their credit ratings are driving up their insurance costs.