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Insurance Credit Checks

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Howard View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Howard Quote  Post ReplyReply Direct Link To This Post Topic: Insurance Credit Checks
    Posted: 29-March-2012 at 16:35
I have just been informed by my broker (Footman James / Aon) that in order for them to give me a quote, I must agree to the insurance company doing a credit check on me.
Just for a quote! I always pay for my insurance in one lump prior to the policy being issued or renewed, so why do they need a credit check. The broker says that if I do not agree to this, then they will not be able to give me the best quote, or in some cases none at all.
Have we any insurance experts in the comunity who can give an explanation for this.
I have never had any problem with credit, as I usually deal in cash or use my credit card, and that is paid off by direct debit on a monthly basis, so a credit check does not worry me, but it is costing the insurance companies, so the premium will go up. Its also a matter of principal.
1963 700 LS
1988 635 CSi
1990 M635 CSi no longer!
2001 E38 728i Individual


http://www.tyneships.co.uk
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Andrew Rolland View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Andrew Rolland Quote  Post ReplyReply Direct Link To This Post Posted: 29-March-2012 at 20:08
I've also heard that if too many companies do credit checks on you it doesn't look good either.
 
When I went looking for my first mortgage I was warned by a number of IFA that don't go and get too many quotes as each building society/bank does a credit check on you which is then logged on your credit history.....So when the next company does a credit check on you they can see that you have been subject to a number of credit checks, they then get suspicous and potentially decline the offer of their service. 
 
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Nigel View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Nigel Quote  Post ReplyReply Direct Link To This Post Posted: 29-March-2012 at 20:47
I'll ask on PH for you Howard, there are some insurance company people in the speed plod and law forum, I'll post a link so you can follow it.
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Nigel

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Nigel View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Nigel Quote  Post ReplyReply Direct Link To This Post Posted: 29-March-2012 at 20:54
Best Wishes

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Nigel Quote  Post ReplyReply Direct Link To This Post Posted: 29-March-2012 at 21:49
Howard, this seems to be the answer :
 
As a previous poster mentioned, it is an ID verification check. It is recorded as such on your credit file for you to see but is not recorded as an enquiry in relation to your financial position. No other lender or anyone you apply for credit from can see the enquiry. A non event but it does get people worried in case of multiple searches causing damage. No probs at all.
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Nigel

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Howard View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Howard Quote  Post ReplyReply Direct Link To This Post Posted: 03-April-2012 at 16:07
Well Nigel it could be. Today I spoke to many authorities on the subject, and got a letter from Footman James.
So here is the letter from Footman James:

Dear Mr Walker,
Thank you for your email. In trying to secure the best price available for our Modern Car Insurance customers we are looking to source quotations from a larger panel of insurers. Some of the insurers we have approached have advised that they are only willing to provide a quotation if the customer has consented to a credit check. In the event that you choose to opt-out of giving permission for credit checks, we would not include them when requesting quotations for your renewal.

We trust this clarifies the matter but if you have any further questions please do not hesitate to contact us.

Kind regards

Ann
Footman James Enquiries

I also spoke to the Insurance Brokers association, who were not giving out info, and the Financial Services Association who were very much in sympathy but unfortunately have no rules on the subject.
In a later email from FJ in response to my asking how many companies needed this info and who they were, I was informed that the company (note THE company) concerned was Aviva.

As far as I can see, apart from too many credit checks upsetting your credit rating, the only need for a credit check is to see how rich you are and to quote accordingly.

As an example, Footman james quoted me £1090 to insure my M635 and my 635csi for 5000 miles between them. This was a 65% increase on my last year's premium. I had to have my 635 insured, so I paid them £450 or thereabouts for 5000 miles for it alone. I then insured my M6 with Performance direct for another 2000 miles for £250, with no credit check, giving me a saving of £390 on the Footman James price.

Footman James now represent Aon, or Aon has taken them over to do their classic car quotes. I dealt with Aon for many years always with a good relationship. Biggest mistake Aon ever made in my opinion!

They do not need to establish my ID. I have had an account with them for 20 years or so, and my company had an account for the 20 years prior to that.

Read what you like into this post, but it is not a legal requirement for you to agree to a credit check prior to giving you a quotation.

How good is my credit? When I bought my M6 for £24K I paid for it on my card! Its the principle that matters.
1963 700 LS
1988 635 CSi
1990 M635 CSi no longer!
2001 E38 728i Individual


http://www.tyneships.co.uk
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Nigel View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Nigel Quote  Post ReplyReply Direct Link To This Post Posted: 04-April-2012 at 14:56
I've just had a silly problem with insurers, not quite the same thing, but silly all the same.
 
I've obtained another bike, I haven't had one for about five years, and about twenty years before that.
 
I gained my motorcycle licence on 13/5/80
 
Some companies wont quote me because I've not gained my CBT !
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Nigel

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Howard View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Howard Quote  Post ReplyReply Direct Link To This Post Posted: 05-April-2012 at 22:05
Nigel

Quote from the Aviva Website FAQ which you will not find until you have filled in the car insurance application form and got to the end. You can then find this little item hidden under a double depth link in their FAQ section. http://www.aviva.co.uk/credit-popup.html
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Credit Search Information
Will the credit search you make affect my ability to obtain credit in the future? Will a record of the search be left on my credit history? In line with standard industry practice, a record of this search will be left on your credit file at the Credit Reference Agency, which will be visible to you when you obtain a copy of your credit file. It will also be visible to other lenders when they carry our future credit checks on you, and may be used as part of their decision-making process when assessing your applications.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
See the last sentence. Does that affect your future credit rating or does it not!


Edited by Howard - 05-April-2012 at 22:09
1963 700 LS
1988 635 CSi
1990 M635 CSi no longer!
2001 E38 728i Individual


http://www.tyneships.co.uk
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Nigel View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Nigel Quote  Post ReplyReply Direct Link To This Post Posted: 07-April-2012 at 11:40
I'll pass it back to the PH topic.
Best Wishes

Nigel

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