Posted on 07/02/2021 2:31:01 PM PDT by PROCON
Developments continue around the efforts of Washington state’s insurance commissioner to ban insurance companies from using credit to set rates for auto, homeowners and renters insurance for three years.
Insurance Commissioner Mike Kreidler issued an order on March 23, 2021, that bans the use of credit in setting insurance rates for new and renewed policies as of June 20, 2021.
Insurance industry groups joined together to try to halt Kriedler’s plan. The American Property Casualty Insurance Association (APCIA), the Independent Insurance Agents and Brokers of Washington, and the Professional Insurance Agents of Washington filed a petition for declaratory and injunctive relief in early April with Superior Court in Thurston County.
On April 23, 2021, a Superior Court judge denied the request for a preliminary junction. Judge Mary Sue Wilson found that industry associations challenging the rule were unlikely to succeed with their arguments. The ruling means that Kreidler’s emergency rule is maintained.
(Excerpt) Read more at forbes.com ...
If they can’t use your credit score for insurance rates, they will decide they can’t use it for anything. You can see where this is going. At the very least, responsible borrowers will have to subsidize irresponsible ones.
We already have had to fund the irresponsible driver with the uninsured/underinsured requirement on our policies.
I got the same one. Not sure how this will affect my policies. I had great credit, lost my job, filed bankruptcy, got another great job and rebuilt my credit and my rates all stay about the same.
Insurance is pay as you go. If you dont pay the premium you are not covered. Simple equation. Its high time they start closing the door on unnecessary taking of person information, which when you read the fine print allows insurance companies to share that information with whoever they want.
Credit checks should be for loan processing and security clearance investigations only and for nothing else.
I can think of a few things that may broadly corelate with heightened auto insurance claims risk that they’re legally forbidden to consider. I think this should be one of them.
Another example: I had lifelong A+ credit and a lifelong perfect safety record. I got divorced. My family, my life, my finances got frivolously burned down. Like the friggin Hindenburg. My credit went to pot for the first time in my life, but I still had a perfect driving safety record. Never had an accident or a claim. Zero connection between those two factors. On credit score alone they jacked my rates to a level comparable to what they’d assess a proven unsafe operator. Big expense right when I’d been bled dry in a divorce and tossed on the scrap heap. No relief from shopping other insurance companies. Wherever they’re allowed to do this, they all do it.
Everyone is legally required to purchase these companies’ product. If the citizens of a state decide to give them reasonable limits on how they can treat their captive customer base, I have no problem with that.
I haven’t heard that. Would be interesting to do a study.
Let’s see insurance companies pull out of the state.... that’ll do wonders for rates.
This was a predictable result, all insurance will go up regardless of your responsibilities and good conduct, etc.. Yes in effect the good risks are going to now subsidize the the poor risks.
Much like the FDIC in rates for insurance for banks, everyone pays the same regardless of the risk for a particular bank.
So those in WASHINGTON State just bend over and use the KY Jelly. Although a suit needs to go to Federal Court.
This was always wrong. They did not used to do this until the modern way of doing things came into play.
lmao
My insurance company notified me today my rates will go up as a result.
Thanks, commiecrats.
People who don't pay their bills hurt all of us.
Just pay your fkn bills instead of using government to takeover and bankrupt businesses.
MY father-in-law, who is in his nineties in age, was refused renewal of his Washington State-issued auto insurance BECAUSE HE DOES NOT HAVE ANY CREDIT CARDS OR DEBT, or so they said.
He never filed a claim and had always paid his premiums on time. He owns his house outright with no mortgage.
He did manage to get auto insurance with another company and he no longer drives but still owns his vehicle which must be insured to be registered.
You do not have to have ins to register a vehicle in WA state.
in fact you are not required to have ins at all.
All you need is proof of financial responsibility.
Fun fact Bill Gates got a ticket in medina (rookie officer) for failure to provide such proof
It was dismissed as was the officer
What if I have a good credit score? Why would that system hurt me?
because they cannot look at it. normally you would get a good credit discount.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.