NAMIC, APCIA reject proposed bill banning credit factors in auto underwriting

“Preventing insurers from using factors that are predictive of risk of loss would result in less accurate pricing with higher risk drivers paying less and lower risk drivers paying more for insurance,” Nat Wienecke, SVP of federal government relations at the APCIA, said in a statement. (Photo: Shutterstock)

In recent years, much controversy has surrounded the practice of using non-driving factors in determining car insurance rates. This week, the issue was front and center at a hearing of the House Financial Service’s Subcommittee on Housing, Community Development and Insurance.

At the hearing, H.R. 1756, the Preventing Credit Score Discrimination in Auto Insurance Act, was a central topic of conversation. The bill aims to prohibit auto insurers from using credit reports, credit scores, and other consumer information when calculating insurance premiums.