UPDATED: Mar 13, 2020
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You’ve got average credit, graduated from high school but dropped out of college after one year of study, and you work as manufacturing manager. Should any of these things matter when you look to buy car insurance?
No, says a new poll conducted by the Massachusetts Association of Insurance Agents (MAIA). The poll shows high support from residents of the state in passage of a ban on insurers using socioeconomic factors like credit scores, education levels and occupations when underwriting car insurance policies.
The poll showed that nearly 64 percent of likely voters would either definitely support or probably support a law that banned insurers from using things like credit scores in auto insurance policies. 29.1 of respondents indicated they wouldn’t support such a law, and that they would probably or definitely vote against it. Almost 83 percent of respondents said credit scores should have no role in determining auto insurance premiums.
Insurers are currently prohibited from using socioeconomic factors like credit scores, education levels and occupations when underwriting auto policies in Massachusetts based on insurance regulations currently in place that were established by the state’s previous insurance commissioner.
The current commissioner says he won’t change these regulations, but the MAIA would like to see these bans codified into law. They hope the Massachusetts legislature will do so, but if not, the MAIA intends on getting such a law on the 2012 ballot to be voted on by residents of the state.
What’s your take? Should insurance companies use considerations such as your occupation and credit score into consideration when they quote a policy?