Issue categories:
December 01, 2013
•
1 min read
Use of Credit Scores by Auto Insurers Adversely Impacts Low- and Moderate-Income Drivers
The use of credit scores by auto insurers to price policies has been a controversial issue over the past decade. Insurers argue that credit scores are correlated with claims frequency – the lower the credit score, the more frequent the claims – can serve as a useful factor in their pricing of auto insurance policies. Critics of this practice respond that correlation is not causation and that insurer use of these scores discriminates against low- and moderate-income drivers who, because of economic circumstance, are more likely to have lower credit scores than those with higher incomes.
Our Subject Matter Experts
Related Articles
October 20, 2026
/ Press Releases
Top Ten Insurance CEOs Earned Over $155 Million in Compensation in 2025, While Consumers Struggled to Pay Premiums
October 20, 2026
/ Blogs
Insurance Companies Claim They Have to Hike Consumers’ Premiums. Their CEO Compensation, Dividends, and Advertising Costs Tell a Different Story
October 16, 2026
/ Press Releases
Tips for Consumers to Get Fair Treatment from Insurance Companies After Hurricane Isaias
October 05, 2026
/ Testimony & Comments