Pa. Lawmaker Seeks to Stop Insurers’ Use of Credit Scores

June 19, 2007

A Pennsylvania legislator has introduced a bill that would prohibit insurance companies from using credit scores to help determine how much customers pay for car insurance.

“It’s a tool the insurance industry can use to hurt you in so many ways,” said state Rep. Jesse White, D-Washington County, who submitted the bill this month.

Driving habits and credit scores are mutually exclusive, White maintained. He alos maintained that the increased payments because of bad credit can be significant.

But some in the insurance industry point out that a good credit score can help reduce the cost of insurance. Banning the practice would hurt responsible drivers, said Sam Marshall, president of the Insurance Federation of Pennsylvania.

Marshall also said credit scores often accurately predict how well someone drives.

“People who are careful and cautious in how they handle their credit tend to be the same way in other areas of their life,” he said.


Information from: The Patriot-News,

Latest Comments

  • June 27, 2007 at 6:53 am
    Ray says:
    Actually, part of what Nebraskan proposes is being considered in the credit score. By paying their insurance on time, not getting the non-pay cancellations and being turned o... read more
  • June 27, 2007 at 9:56 am
    Nebraskan says:
    Underwriter, if you start that business, let me know! And Ray, thanks for the info. I kind of thought it might play a part in my credit score, I just wish it played a BIGGER p... read more
  • June 26, 2007 at 5:57 am
    Nebraskan says:
    Thanks for the reply! I appreciate the thought you put into it!! And I will certainly do that, well maybe. I'm with American Family Insurance, and feel I have a great rate! I ... read more
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