Ban on Insurance Companies Using Credit Score to Determine Rates
OLYMPIA, Wash;-- For ten years now insurance companies in our state have been using your credit score to help determine your insurance rates.
Insurance Commissioner Mike Kreidler is now calling for a ban of this practice because he says your credit score has nothing to do with how well you drive a car, or take care of your home. Kreidler also says your credit score can now impact your car and auto rates by up to 50%. He says this is an unfair and discriminatory way to determine your premium rates.
"Don't pick on me just cause I just got laid off from my job. Don't pick on me cause I've had to build up my credit card debt because of some medical problems. All of those things seem to be somewhat unrelated, in most people's minds, including my own, as to whether that has anything to do with how you drive a car."
Kreidler also told me that if his proposed ban succeeds, he expects some insurance companies to threaten higher rates, but says successful companies will want to retain their customers by rewarding good driving. A hearing about this bill will take place tonight in just under an hour.