Insurance and credit report

Insurance companies are involved in many of my pet peeves. This time it’s the insurance company that has both my homeowner and auto insurance. I just received the renewals for this year. The paperwork lets me know that I am not getting the lowest rate, even though I am getting a good rate, because of information on my credit report – but they, of course, say they don’t have to let me know the exact problems. They do, however, tell me that some of the reasons may be that I have not had a car payment or paid off a car loan in the last 5 years (my car is a 2012 that is in great shape – why would I take out a loan for a new car?) and they say I have no credit cards.
Both are interesting, and I will be calling my agent shortly to see if they can tell me anything about this – though I am not holding my breath. My car is paid off and running fine. At some point we are going to have to decide if it is better to put out more money to keep this one running smoothly or to bite the bullet and buy a new one. Even if we do decide to buy a new one, there is a possibility we would just buy it without a loan. That apparently is a bad thing – for some reason the insurance considers us a better risk if we pay monthly on something rather than save up and pay cash. Why does paying extra money (interest) for a loan make us a better risk than buying the car outright?
As for credit cards – this really does make me mad. We have one credit card because we need/want only one credit card. We use it for everything, and we pay it off every month. This makes me a bad risk? Or is the credit bureau wrongly reporting that we have no credit cards? This sounds like it’s going to be a mess to figure out.
Well, I am off to make some phone calls…



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