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Many People Want States to Ban Allowing Auto Insurance Companies to Take a Driver’s Credit Score into Consideration for Premiums

The economy has caused many people to get in over their heads financially. When auto insurance companies assess a driver’s risk they look at their credit score. Many people have credit scores that are below 620 points so they have a hard time getting lines of credit extended to them.

The unemployment rate is currently almost 9.3 percent and many people are having a hard time finding a job. A new poll has found that most consumers feel that they should not have to have a good credit score in order to get an affordable car insurance coverage premium. Almost 64 percent of those individuals that were polled said they think that auto insurance companies should not be able to take a consumer’s credit score into consideration when assigning them monthly premium rates.

Some auto insurance industry experts say that a credit score has a lot to do with how responsible a driver is. People who handle their personal finances poorly often have issues with personal responsibility which could spill over into their driving lives. Auto insurance companies also argue that people that have lower credit scores are also more likely to default on making their monthly insurance coverage premium payments on time.

Many people fair that credit scores are unfair and lack credibility because there are three different credit scores that a person has. There are also often inaccuracies on credit report because they are being updated all the time so more than 83 percent of people find that it is unfair to rely on the score for premiums.

With the economy being in a bad way, it can be hard to gauge just how responsible a person is because many people who have excellent credit scores are losing their jobs every single day in the United States. These people are now relying on unemployment benefits, credit cards, saving accounts, and 401 k benefits to pay their bills so they are in danger of having their credit scores take a drastic hit.

It is important for auto insurance coverage provider to have a sense of humanity while also covering their bets at the same time. A credit score is something that everyone over 18 has so it can be looked at but a driver record speaks volumes about how competent a person is at operating a motor vehicle. Some consumers say that states should ban the practice of using a credit score to help to determine insurance premiums but a credit score plays a huge role in securing anything.

Now in order to get satellite TV, cell phone service, Internet service, apartments, and other items people must first undergo a credit check. People cannot be denied auto insurance coverage based on their score. Most people end up being denied auto insurance coverage due to a bad driving record, too many accident claims, and DUI or drug arrests. It is unlikely that a ban would get enough support thrown behind it so that it could be passed. It is hard to pass new laws that impact the insurance industry because Republicans hate new regulations and it is 2011 which means that elections will be happening in November of next year so people are hesitant to test the waters.

It is important for people to be mindful of their credit scores before trying to get auto insurance coverage or change providers. By paying your bill payments on time and keeping your credit card balances low you can help to keep your credit score at a decent rate so that you can get a monthly insurance premium that is affordable.

Source: Patriot Ledger