Insurers Barred from Using Credit Scores In Setting Auto Insurance Rates

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BostonOn Wednesday, Nov 23rd  Governor Patrick signed a MASSPIRG supported bill prohibiting insurers from using  credit scores  for underwriting and  setting   auto insurance premiums. 

When  the  Massachusetts   auto insurance market was deregulated in 2008, MASSPIRG  called on lawmakers and regulators  to  make ensure  auto insurance premiums  would be fair,  and  based on factors related to “how you drive” not “who you are.” 

Credit scores, obtained from credit reports are often incomplete and inaccurate and have no relation to how one drives.

MASSPIRG is continuing to  push for reforms prohibiting insurers from using other rating  factors not related to consumers’ driving record   including  type of employment,  and home ownership.

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