In a letter to the Pennsylvania House Insurance Committee, the Consumer Federation of America (CFA) urged the Committee to support House Bill 657, which would prohibit the use of credit history in personal insurance or life insurance.

Insurers’ use of credit history in auto insurance, homeowners insurance, and life insurance forces millions of Pennsylvanians to pay higher premiums for their coverage than residents with high credit scores, even when those with lower credit have demonstrated low risk, such as a history of safe driving or no prior claims on homeowners or renters insurance policies. Prohibiting insurers from considering this factor in underwriting decisions and setting customer premiums will increase access to the insurance market for financially vulnerable residents and make pricing fairer for all Pennsylvanians.