Why is interest rate higher for Full-Timers

Foodsman wrote:
Lender and insurance companies always seem to be open for all forms of conversation with reflection on "The Good - The Bad & The Ugly"...

A friend of mine was a big wig with one of the major car insurance companies and I asked him one afternoon "what is the biggest fraud/hoax perpatrated on the unsuspecting public by insurance companies?" He didn't hesatate even a moment when he said "Bad Credit Rates"!

He said the primary reason for the higher rates is "people with poor credit generate more claims and higher amounts of money of than those with good credit"! So I asked him where the fraud/hoax is and he said "there is nothing other than insurance company BULL to substantiate those rates.

It all started in a boardroom where the decision was made. The rationall was the banks charge more for people with bad credit so why don't we? The bad credit folks hiking up frequency and $ amounts could not be substantiated and was never even an issue. They had an avenue to make more money "BIG MONEY" and took it.

And NO, my friend and his company are not open for discussion... :)

Harry

You heard it from a friend and I saw it on the internet, if that isn't proof positive, I don't know what is. And to top it off, someone I don't know, never met, who posts behind a screen name, said it is not open for debate. I must say I have never seen a stronger case for "case closed". I do, however, hope the rest of the insurance world never catches on to your truths. Since people with bad credit have higher rates than people with good credit, and we all know that BIG MONEY will never give up that BIG MONEY, it they leveled the playing field, people with Good Credit will end up paying more, which is very bad for me.