I have been an Allstate policy holder for the last 20 years. I have never lapsed a policy, and have put in few claims on my automobile and none on my homewoners. More recently I have added my son to my automobile policy and noticed an increase in my premiums beyond what my friends and familiy have seen under the same circumstances. I am paying close to $5000 a year in auto insurance and I don't even have collision on all of the automobiles. After questioning my agent aggressively, she finally stated that I'm probably paying more because of below average credit! I was shocked since I never knew that insurance companies can use credit as a basis for pricing premiums. This prompted me to request for my free credit reports from the three national agencies. Much to my dismay, my scores are average, about 685. The odd thing is my husband and I have been very fortunate to hold good jobs. We have very little debt. We even paid off our mortgage after one year of holding it 19 years ago. We only have one car loan, the other two we paid cash for. And we are in way better financial shape then the average American. I do not know how these credit scores are formulated, and I most definitely believe that we are being discriminated against. Our credit report doesn't even show the mortgage that we paid off years ago. Is there anything I can do to fight this apparent "wrondoing" in the system?
New Jersey

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.  In 2019, Bach was appointed to a 3 year term as a member of the American Bar Association Standing Committee on Disaster Preparedness and Response.