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

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,
http://www.pennlive.com/patriotnews

Topics Carriers Legislation Pennsylvania