Using Credit Scores in Auto Insurance Rating

From Sun Sentinal

What does your credit score have to do with what you pay for automobile insurance? How about your education or your job?

At a congressional hearing in Washington Florida Insurance Commissioner Kevin McCarty brought the state's long-running battle with the insurance industry over these issues to the forefront. He argued that credit scores are not "fair and valid" criteria for setting auto insurance rates.

Under an exemption from Florida's public records laws, insurers have been able to set policy premiums without revealing their pricing models. That exemption will expire in October, the state will ask auto insurance companies to reveal more about their processes.

The Federal Trade Commission is looking into the issue and Congress is considering two bills that would ban the use of credit scores in auto insurance rate decisions, a nationwide practice that generally results in higher insurance rates for those who have poor credit.

To make sure you are getting the best auto insurance rates, visit insurance.com to compare rates from leading insurance companies like Progressive, Geico, Esurance, Travelers AIG and many more