Survey: Credit Scoring A Rate Factor
NU Online News Service, March 31, 9:40 a.m. EST?In a new online poll conducted by the Kansas insurance department, more than half of Kansans participating in the survey said credit scoring was a factor in their increased auto and homeowners insurance rates.
Among 524 individuals who have responded so far, 457 people, or nearly 90 percent, said their auto and homeowners insurance rates have gone up in the past year, and 269 respondents said they were told by agents credit scoring was a factor in their insurance premium hikes.
The poll also found that 194 respondents did not receive any explanation for rate changes, while 153 people indicated they did receive explanation from their agents after the inquiry.
"We know that some Kansans are seeing rate increases, while others are seeing decreases because of credit scoring," said Kansas Insurance Commissioner Sandy Praeger, who organized the online survey. Ms. Praeger said she supports legislation that would allow her office to regulate the practice of credit scoring by insurers.
"Right now, there's no regulatory authority over this practice, and Kansas consumers deserve to know how their rates are determined. We need a clear picture of these trends so that legislators can understand how credit scoring is affecting real people, and then adopt appropriate regulatory legislation," Ms. Praeger said.
"This survey should shine some much-needed light on the matter."
Full results from the Kansas Insurance Department's online survey can be found at www.ksinsurance.org/creditscoring/credit_results.php.
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