A new law has passed in Massachusetts that will ban insurers from pricing auto insurance based upon socioeconomic factors. Governor Deval Patrick signed the associated bill into law this week and believes that it will afford consumers with more protections against insurers constantly on the lookout for extra money. The ban was already enacted in the state some months ago but existed only as an administrative regulation. The bill’s passage comes after months of legislative struggle and conflict between consumer advocacy groups and insurance companies. Insurers opposing the measure claim…
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Department of Justice proposes reform to stop insurers from using credit scores for screening
The government of New Brunswick has proposed a number of regulations that may stop car insurance companies from being able to include data relating to an individual’s credit score in order to determine whether or not they will insure them, and what their premiums will be every month. There were a number of draft regulations posted by the Department of Justice on its website for public consultation that would change the guidelines for underwriting by insurers. The consumer advocate for insurance of New Brunswick, Ronald Godin, began his push for…
Read MoreMassachusetts insurance agents rally against use of socioeconomic factors to price insurance coverage
Massachusetts insurance agents have come together to oppose the use of credit score and other socioeconomic factors when determine the cost of auto insurance. The Massachusetts Association of Insurance Agents (MAIA) will be campaigning to bring the matter before Congress, where the group hopes legislators will ban what they call a “discriminatory practice.” More than 1,400 agencies representing MAIA are currently mobilized to gather signatures from registered voters for a petition that will bear their concerns to lawmakers. The campaign has won the support of Attorney General Martha Coakley, who…
Read MoreMAIA proposes 2012 referendum ballot to stop socioeconomic factors from impacting auto insurance premiums
The Massachusetts Association of Insurance Agents (MAIA), a group based in Milford, has put forth a proposal for the 2012 election for a ballot referendum that would stop auto insurers from becoming able to use socioeconomic factors to underwrite their insurance. This practice is already banned by the state, but the MAIA is seeking to continue making it illegal to use information such as a person’s education, job type, and credit score for determining an individual’s auto insurance premiums. That said, organizations that represent auto insurers are arguing for the…
Read MoreA bad credit score can mean costly insurance rates
Drivers with bad credit have always had a problem obtaining affordable car insurance. Few insurance companies would deny offering coverage to such drivers, but the policies available tend to be pricey. Between insurance premiums and deductibles, some of the cheapest policies drivers with bad credit can get will cost them more than $300 every month. GEICO and Farmers are two insurers looking to ease the stress of the issue by offering plans tailored for motorists with bad credit. Credit score plays a vital yet little known role in how insurance…
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