Credit can no longer be used as a factor when determining consumers’ insurability or the amount of car insurance premiums they’ll pay in Massachusetts. The governor of the state made it official recently when endorsing a bill that disallows the use of credit. This action solidifies into law regluations that had been previously put into place.
This can be seen as a win for consumers and citizens of MA. It comes at a time where people are suffering from unemployment and conditions where a credit scores have become harder to maintain. The use of credit in determining auto insurance premiums has been a controversial issue as are other factors like the use of occupation. Many if not all consumers don’t think that these things should have any sway in what they pay for coverage. What matters to them are driving habits. Of course not all insurors use credit as a determining factor either even though it is an accepted practice in many states.
Below is an explanation of the use of credit in determining car insurance premiums (where in several states it is allowed):