Call for No More Credit Scoring

 
There are many within the auto insurance industry that use credit scoring to determine what your rates should be on a policy with them. They say that if you have a low credit score than it shows risky behavior and so they use it to judge how much they should charge you for your auto insurance compared to someone with a higher credit score. But those that have the lower scores are understandably upset because in this economy having a bad credit score can simply mean that you are having problems paying your bills – and might not be any fault of your own.
 
Well, Washington’s Insurance Commissioner Mike Kreidler agrees. He says that the auto insurance company should not have the right to pull credit scores to determine how much they are going to charge you for your policy. In fact, he argues, it is those with the lower credit scores that need the lower payments as a rule. Those with the higher credit scores probably have a job and are able to afford to pay their bills.
 
Kreidler says that over the years he has gotten a lot of complaints from people who say that they have a poor credit rating, but that they have always paid their auto insurance bills on time they have never had an accident or a ticket and have never filed a claim – so why are they being penalized with higher rates?
 
He says that even though there were laws passed eight years ago to protect auto insurance clients that the companies are still using the credit scores – and in fact are using them more now than ever. He says that he finds this unacceptable and if his bill passes the legislature they won’t be able to do it anymore. He says that the auto insurance companies say that without credit scores they will have to raise everyone’s rates – and he says that this is a bunch of nonsense. He argues that if they want your business they have to give you a better deal.

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