State Lawmakers Challenge Insurance Premiums Based on Credit History
Lawmakers in several states, including Iowa, New York, Oklahoma, and Pennsylvania, are considering bills that would prohibit insurance companies from using consumers' credit history to determine premiums for homeowners and auto insurance policies. This practice, known as credit-based insurance scoring, assesses the likelihood of a consumer filing a claim, with lower scores indicating higher risk and resulting in higher premiums. Michael DeLong from the Consumer Federation of America argues that this method is unfair and makes insurance unaffordable for many. Currently, only a few states, such as California, Hawaii, and Massachusetts, have bans on using credit history for auto insurance, while others have restrictions on its use for homeowners insurance. 
