Rep. Jim Gooch has filed a bill that would limit how much auto insurance companies could raise rates on drivers with bad credit.
Insurers have overwhelming evidence that drivers with bad credit are more expensive risks behind the wheel. The American Legislative Exchange Council issued a report back in 2003 finding bills like this increased insurance costs for drivers with good credit:
“A prohibition against insurance scoring would concentrate benefits among a relatively small group of high-risk individuals who would be relieved of the burden of paying insurance premiums that are commensurate with the risk they present. It would accomplish this at the direct expense of a larger group of low-risk individuals, who will pay more than they would if insurance scoring was allowed.”
A similar but more restrictive bill failed to get a floor vote last year.