Why would the auto insurance company that I am suing look at my credit report?

Question

I was in an auto accident back in '04. I am suing the other drivers insurance. Today I was looking at my credit and saw that her insurance company checked my credit many times since then. WHY? What the heck are they looking for? To see if I need the money?

Answer 1

Well, insurance companies do have access to credit reports because they often use credit when quoting and selling policies and determining rates. So they may be able to access yours. When you became a plaintiff, you opened up your entire life basically. The kinds of things you have to disclose about yourself, the endless amount of medical records that can be accessed, and the background information that can be obtained is amazing. Pretty much the price you pay when you become a litigant.

If a person has judgments against him/her from creditors or other entities, it would seem to demonstrate to a certain degree how filing a lawsuit of his/her own might benefit them to the point that they could satisfy judgments/debts if awarded a large sum of money. Maybe.

Answer 2

I really doubt it has anything at all to do with your lawsuit, unless you signed a credit authorization with that company.

Insurance companies and banks will pop up on your credit report all the time, mainly because they're running a search to see if they want to offer you either insurance or credit cards. I routinely see insurance companies on mine, mostly Geico, Progressive - the ones that are really actively seeking new (and solvent) business.

I'd wager it's just a coincidence There should be a note on your credit report about these checks being for solicitation purposes only and that they do not affect your credit rating.

Answer 3

That's exactly why. They want to see if you have ulterior motives for suing. And if they keep checking, it's too see if your counting your chickens before they hatch. They will do what they can to discredit you. And every time they check your credit, it costs you points. Contact the credit bureau and let them know that you are not trying to get credit anywhere and not to be letting this insurance co. or any other place get your credit report without your permission. Don't let them harass you into a settlement!

Answer 4

Some insurance companies also look at your credit every year b/c it is part of your premium. If you have good credit, then you will get a better rate, if you score is low, it is likely that you may have to pay more.
Plus, if you were in an accident, the insurance company wants to make sure you are not in debt. If you are, they may research it further to make sure you are not pulling a scam to pay off other bills.
When you take out your insurance, you normally sign something stating it is okay for them to pull your credit, but you'd have to find out when it is okay for them to do that.

Answer 5

I am not sure if they legally have the right to do that, but is probably to see if you are having any other problems with creditors, to let them know what kind of character you might be, as well as seeing your financial status for a such possible claim.

Answer 6

Maybe they're looking to see what kind of a person you are and if you've had a questionable past. I wouldn't be surprised if they've also done a criminal background check on you.

Answer 7

They want to make sure, you'r not in the habbit of suing too many times!!

Answer 8

to see how much outstanding debt you have. to see if your in finanical despair or if you have made any "large" purchases on credit waiting for a settlement.

Answer 9

What Chris said.

Answer 10

quite possibly checking if your in great need of the cash, and are just pursuing them because your skint