I don't think that has to do with the state, I think it depends on the insurance company. You can have a perfect driving record and not have it matter one bit. Wohoo! You're not a person, you're a credit score!
That law limits what the insurance company can consider in doing their credit ratings, I don't think most states have that much protection for people. That doesn't appear to be a law requiring insurance companies to use credit ratings.
I read an article about a person who was charged $236 a month for liability insurance. They had a perfect driving record but they had recently filed for bankruptcy because of medical bills. They ended up selling their car because they couldn't afford the insurance.
Yes, it is another way to screw over the poor and keep them poor.
the insurance commissioner here really does not like it and tried to get a law passed that would forbid that. All he got was a bill that required insurance co's to explain how the credit score affects insurance rates.
Now when merchants try to get me to sign up for their credit cards I say "No way - that will just increase my insurance rates!" Would love to see the credit industry and the insurance industry fight it out.
A friend's insurance was greatly reduced when she got rid of all but one of her credit cards even though she always paid her bills on time.
13. Yes, my state allows a credit check for car insurance...
and with bad credit your insurance rate is higher and that stinks. If you don't pay your premium the insurance company drops you immediately, so what does it have to do with credit, it doesn't make sense.
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