Some Calgary insurance customers are surprised to learn their credit rating could affect their rates.
The Co-operators Insurance Company will be checking the credit rating of its clients and will even use the information to help set rates for home insurance.
The company recently sent out letters informing customers of the change in policy. The letter warns anyone thinking of refusing that "if we do not have a credit score, we must assume the lowest possible score which may result in a higher premium."
The move is not in violation of the privacy act because customers are being asked to give permission to the company before it accesses the information.
But Co-operators customer Paul Brick thinks the move is completely unnecessary.
"I find it offensive that they're doing it because I don't see the relevance of credit reports to the probability of claims in the future."
Co-operators say it is one of the last major insurers to move forward with credit checks.
The company says other companies have been doing the same thing for years.
The new measures will not be taken for auto insurance.
