No More Credit Pulls

Many people don’t realize that when they go for auto insurance that the company that they are getting a quote from is going to pull their credit to do it. They will look at their credit scores and that will determine if they will offer them auto insurance, or if they do – how much they will charge them for it. It happens all the time, but many don’t realize that they do.

However, in Alberta, it has gotten much tougher for the auto insurance companies to do that. Instead, they are now required to get specific consent from the purchaser to be able to pull their credit. They are not allowed to collect or use their credit report no matter whether the auto insurance is required or optional.

Getting someone’s credit report is governed under provincial and federal privacy legislation. Alberta does not have a regulation for regular insurance, but for automobile insurance applications the wording has been changed. It now has a place for you to sign if you are applying for a premium payment plan – and it says "If I apply for a premium payment plan, I authorize you to obtain and use my credit report;" and you have to sign it.

Therefore without that specific authorization signed, auto insurance companies are not allowed to collect or use their credit report information. If they try to they can get into a lot of trouble, and they cannot deny you a quote if you refuse to sign it either. Some auto insurance companies are trying that tactic as well, but it won’t fly in a court of law.





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