Delaware Bill to Nix Use of Age, Credit for Auto Premiums Stalls

By | April 7, 2017

Legislation to prevent insurers from using age and credit scores in setting automobile insurance rates has stalled amid opposition from industry groups.

The bill, tabled in committee Wednesday, prohibits the use of age, marital status, credit scores and income in setting auto insurance premiums.

Instead, insurers would have to set rates based on a driver’s claims experience, safety record, number of miles driven annually, and years of driving experience. They also could use other driving-related criteria, such as the type of vehicle.

Supporters of the measure say motorists should be judged on their driving histories, not their personal details.

Opponents say age and credit are legitimate factors in determining risk, and that the bill would stifle competition and create greater uncertainty for insurers, leading to higher rates for most drivers.

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