PA Legislature Introduces Bill to Block Use of Credit Scores by Carriers
A Pennsylvanian state legislator introduced a bill to stop insurers 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 introduced the bill this month. He also stated that credit scores are mutually exclusive from driving credits, adding that the increased payments because of bad credit can be significant.
However others, particularly in the insurance industry, indicate that a good credit score can actually reduce insurance costs. 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.
Published on June 18, 2007
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