Drivers who have spotless records and have never had an at-faultaccident may still face higher premiums as a result of insurers'credit scoring process, Consumer Reports magazine reported.

In reaction a property-casualty trade group said the publicationwas rehashing discredited arguments.

In its August issue, the magazine reports its investigationfound that credit scores and their uses vary among insurers andtheir application could cost many drivers hundreds of extradollars.

Neil Alldredge, senior state advocacy director for the NationalAssociation of Mutual Insurance Companies, said the article“rehashes false claims and specious arguments that were put to restlong ago after insurance scoring was subjected to rigorous analysisby university researchers and government agencies such as theUniversity of Texas.”

The magazine found that credit scores used by insurancecompanies weigh credit data differently from traditional lenderscores. As a result, insurance scores can penalize even thoseconsumers who use credit reasonably, Consumer Reports wrote.

Mr. Alldredge countered that insurers use credit scores topredict loss while lenders use them to calculate probability ofrepayment.

Few insurers routinely disclose scores or what role they play insetting premiums, the magazine asserted.

Mr. Alldredge said that most states require insurers to disclosesuch data.

Consumer Reports also noted that the credit data from which thescores are derived have a reputation for being inaccurate and outof date.

“If credit scores are so unreliable, why are they so widelyused?” asked NAMIC public policy director Bob Detlefsen inrebuttal.

Advocates from Consumers Union, the publisher of ConsumerReports, have been urging legislators and regulators in severalstates to ban the use of credit scoring to underwrite homeownersand auto insurance policies, the magazine notes.

“It's unfortunate, but perhaps not surprising, that CR wouldpublish a piece of naked propaganda that is obviously intended tofurther its lobbying campaign,” Mr. Alldredge said.