Poll shows support for banning credit scores in auto insurance coverage The Patriot Ledger
30.08.11
A new poll indicates that a ballot question to ban the use of credit scores for car insurance would be approved if it went to voters today.
A phone poll commissioned by the Massachusetts Association of Insurance Agents shows that 63.5 percent of likely voters would definitely support or probably support a law banning insurance companies from using credit scores, occupation and education levels when setting auto insurance rates. Meanwhile, 29.1 percent said they would probably or definitely vote against such a proposal.
In response to another question, nearly 83 percent said credit scores shouldn’t play a role in determining auto insurance premiums. “It verifies what many people believe instinctively about the fairness and unreliability of credit scores,” said Dennis Murphy, a lobbyist for the agents.
The state’s previous insurance commissioner wrote regulations that banned the use of socioeconomic factors such as credit scores and occupations in underwriting and setting premiums for car insurance. The current insurance commissioner said he won’t change that rule as long as he holds the job.
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Why is there no competition amongst bMassachusetts auto insurance/b?
I have to write a term paper about a state, local, or federal issue and I’ve decided to write about why massachusetts is the only state in the coutry that will now allow any competition amongst auto insurance providers. It’s an issue amongst drivers state-wide and Im wondering if anyone knows anything about this obscene policy that might help me put this puzzle together. If anyone has any websites or just general knowledge that may help me, I would appreciate it.
Will the last insurance company in Mass please turn out the lights when they leave? I work at a small auto insurance company and when I want to cut the tension in a meeting, I suggest we sell in Massachusetts; breaks ‘em up every time. Even GEICO sells in 49 states, everywhere but Mass.
The Mass insurance commissioner & legislature only allow 1 policy the be sold and sets rates that insurers can charge. Mass drivers have no real incentive to keep a clean driving record and companies have no incentive to find good drivers. The 15 or so auto insurers in the state like the way things work so pay big $$ to the legislature to keep things the way they are. Once in a while someone brings up the ‘reform’ word and kick it around but nothing ever really changes.
In ten words or less, overregulation of the industry. No competition, no cost controls. Mass has 15 companies competing, Ohio has over 600.
Try insurancejournal.com and search for Mass & auto; there are lots of articles.
Previous poster is correct. Let me add some things.
This has been going on for at least 30 years in Massachusetts. The Massachusetts legislature has decided that if insurance companies are left by themselves to determine prices, that prices will be outrageously high. So the legislature has decided that the government will set the rates for all insurance companies. Everyone thinks their insurance rates are too high, but when the government steps in, the price is set lower than insurance companies would set it. Insurance companies do not think they are too high. If the government sets the price too low, companies will not willingly compete.
