Insurance companies have been using credit scores as part of their formula for setting insurance premiums for some time now. Many claim that the practice unfairly targets lower credit scores, which are typically connected to poor clients, making premiums even more unaffordable for the poor. The Massachusetts Association of Insurance Agents has decided to let the voters decide the fate of the practice.
The group has taken the initial steps to get a petition on the 2012 ballot. While they are waiting for everything to fall into place for the ballot initiative, the group is aggressively lobbying the state legislature to end the practice. Why is this an important issue? Excessive premiums are the number one reason that uninsured drivers do not get a car insurance quote and carry the coverage they need. That affects every driver in the country.
Many feel that banning the practice of including credit scores when setting premiums would lower the number of uninsured motorists on the roads everyday. With fewer accidents involving uninsured motorist, everyone’s insurance could potentially cost less per month.