American Property Casualty Insurance Association: Most Consumers Pay Less Due to Credit Based Insurance Scores

OLYMPIA, Washington, April 29 -- The American Property Casualty Insurance Association issued the following statement:

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The American Property Casualty Insurance Association (APCIA) issued the following statement in response to Washington Insurance Commissioner Mike Kreidler's press release calling on his fellow state insurance regulators to ban the use of credit-based insurance scores (CBIS). This statement can be attributed to Jeff Brewer, APCIA department vice president, public affairs.

"Credit-based insurance scores give consumers more affordable and widely available products in the marketplace. Banning these tools results in higher prices for most drivers.

"The fairest system of insurance pricing is when each driver is charged based on their unique characteristics and risk. Banning the use of credit-based insurance scores will only reduce consumers' options and raise rates for hard working Americans.

"Unfortunately, Washington consumers will become very aware of this impact as Commissioner Kreidler's regulations take effect and more than one million Washington consumers face double digit increases in insurance costs.

"Banning the use of credit-based insurance scores also forces safer drivers to pay more to cover riskier drivers. This predictive tool helps insurance companies evaluate the risk of loss with greater accuracy. By having more information because of CBIS, insurers are better able to personalize what each driver pays and, in some cases, offer insurance to consumers that may have been otherwise rejected for a policy."