A US lawmaker is seeking to make it illegal for car insurers to determine rates by using consumers' credit scores. “Historically marginalized populations have already had less access to wealth and credit building opportunities, and the continued use of credit histories to set auto insurance pricing compounds racial discrimination and exacerbates wealth inequality,” she said in a letter to colleagues. The bill would require the auto insurance industry to disclose how much a driver pays in premiums and deductibles each year based on his or her creditworthiness. Car insurers are reportedly not expecting the bill to become law, but it could be introduced as an amendment to another bill that seeks to revamp the US credit rating system.
A US lawmaker is seeking to make it illegal for car insurers to determine rates by using consumers' credit scores. The bill would require the auto insurance industry to disclose how much a driver pays in premiums and deductibles each year based on his or her creditworthiness. Car insurers are reportedly not expecting the bill to become law, but it could be introduced as an amendment to another bill that seeks to revamp the US credit rating system.