HR 1756 would prevent insurers from using credit scores in auto insurance

| March 22, 2019

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Representative Rashida Tlaib, a freshman congresswoman from Michigan, recently introduced HR 1756, a bill that’s of special interest to the insurance industry. The bill would prohibit auto insurers from using a person’s credit score or credit history as a factor in setting car insurance rates. The use of credit scores in determining car insurance rates has long been controversial. Several states (California, Massachusetts, and Hawaii) already ban it. The bill would prohibit the three credit reporting bureaus (Experian, TransUnion, and Equifax) from giving consumer reports to anyone who would use the information in the underwriting or rating of auto insurance. Auto insurance premiums are based on many factors, such as the consumer’s driving record, years of driving experience, miles driven, the car itself, the driver’s location – and, in states where it is allowed, credit scores. Tlaib represents parts of Detroit, which has the highest auto insurance rates in the country. It’s her belief that a person’s credit score does not accurately reflect what kind of driver they are.

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