INDIANAPOLIS (WANE)- You may not know it… but your credit history often plays a role in how much you pay for insurance. Now, an Indiana lawmaker wants to change that.
“I was shocked to find that out. That actually, my insurance rate could be a combination of a whole lot of things, which I think are valuable, but also whether or not I have a good credit score,” State Senator Greg Taylor (D) District 33 said.
Right now, State Senator Greg Taylor is fine-tuning legislation that would basically keep insurance companies FROM USING your credit score when calculating your rates.
State Senator Taylor explained “I want to make sure that nobody can use a credit score, because it doesn’t make sense. It just hurts people who have had problems, or who are poor.”
Jenifer Groth, Director of Communication and Outreach for the Indiana Department of Insurance said “Companies are not required to use credit scores in rating, but they are permitted to do so under Indiana Code 27-2-21” .
Insurance Agent, Lucy Bolin, with Access auto insurance, said they don’t check your credit.
Bolin explained “I know there are so many companies that they go through by the credit. The good credit you have, the good prices you’ll get or the best rates. Bad credit? You’re not going to get the really good price.”
We asked her thoughts on the proposed bill.
Bolin said “I think it’s fine. I think it might help so many people.”
We stopped by Ed Martin Nissan to see their thoughts on the proposed bill, from an auto dealer’s perspective.
Matt Steinbrink, Sales Manager for Ed Martin Nissas explained “On our end, I think it can only help us, as far as helping the consumer. In particular if they don’t have the best credit history, they’re probably getting hit with higher interest rates and a higher monthly payment. then to have that affect their insurance rate as well, too. They’re getting hit twice. So it can only help them, it can only help us.”
We spoke to an insurance agent who feels like the idea is pretty much an uphil battle.
If you would like to read the full current state law about insurance and your credit score, click here http://www.in.gov/idoi/files/Bulletin_176.pdf