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I requested quotes from Liberty Mutual and Geico for car and homeowner's insurance, and they both refused to insure me. This was a shock to me, since my wife and I both have credit ratings above 800, and we've had exactly one claim on our State Farm insurance (a fender bender) in the last 20 years or so.

Liberty Mutual gave these reasons for declining me: Age, Caps, and Early Shopper D. Are they saying I'm too old, and is that age discrimination? What do the others mean?

Geico's reasons were "Insufficient number of installment loans" (we don't take out loans for anything, but so what), "Excessive number of bank revolving accounts" (we have about ten credit cards that are always paid off in full), "Credit history is too short" (my credit history goes back to at least 1994), and "Insufficient number of open finance accounts" (not sure what this means).

I don't understand why they'd think I'm a bad risk. I'm going to call them and ask, but I expect them to give me as little information as possible, and I'd like some insight about what's really going on here.

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  • Where do you live? Is there anything notable or special about the home and/or car? Mar 9 at 17:26
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    @ChrisW.Rea I live in a suburban area in Oregon. Our two cars are on the old side, a 2016 and a 2007, but otherwise typical. Our house is on a creek, but flood insurance is separate, so they wouldn't be covering me for that.
    – T Scherer
    Mar 9 at 17:45
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    Bundling can confuse the real issue. Ask just for auto insurance, and see what they say.
    – RonJohn
    Mar 9 at 18:15

3 Answers 3

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Geico's reasons sound like parroting reasons from a credit report why your score isn't higher. The implication is that your credit score is their primary reason for declining you, which doesn't make much sense over 800. Score reports will list these "reasons" even with excellent credit, but they are just ways you could theoretically get a few points higher.

Did Geico say what score (agency and numerical value) they obtained for you? Are you sure your scores from all the major agencies are over 800, or could there be discrepancies on the report Geico used?

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May not apply to this case, but worth remembering: If you have locked down your credit agency records (a recommended security precaution), nothing which requires that information will be approved. If that might be the case, check with the vendor to find out if the problem is indeed that they were refused access, and which credit agency they queried, then contact the credit agency to find out how to do a short term unlock (ideally just for that one vendor), set that up, and reapply with a note asking them to try the credit pull again.

Security is always somewhat inconvenient. Still worth having, but you should know what hoops to jump through when you need to authorize something unusual, and when those situations are likely to occur.

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My guess is your lack of loans somehow triggered a red flag, even if your score is really good. The algorithm might overrule your good score because old mortgages have fallen off your report and now you only have 10 credit cards. Who knows what kind of checks they have set up.

Might be better off going through an agent rather than applying online. They would notice that you are obviously responsible with your money and overwrite any automated "flags".

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