WA Senate Passes Insurance Credit Scoring, Restitution Bills

Several bills passed by the WA State Senate now move to the House for consideration.

  One of the bills would examine pros and cons of credit scores for  insurance scoring

Insurance companies have, for decades, done studies on the connection between a person's finances and their driving habits. According to the insurance industry, people with higher credit scores have fewer insurance claims.

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Opponents of the practice say a person can have a clean driving record regardless of their finances. The arguments have swayed back and forth.

Now, the Senate has passed Senate Bill 5589, which would require the Insurance Commissioner's Office to study how insurance firms use these scores, and how they affect premiums. Almost three years ago, former Insurance Commissioner Mike Kreidler tried to get legislators to push through a ban on using credit scores in WA for insurance, but despite passing it was later challenged in court and overturned.

SB 5589 passed by a margin of 29-20. One Democrat joined all Senate Republicans in voting no.

Opponents say not using the scoring means the premium savings for those customers with higher marks would be gone, and higher rates paid by less safe drivers would be split up evenly between all motorists.

Supporters say a driver should be able to rely on their clean record, or the actual condition of their home and belongings to determine their coverage and rates. They say not all lower-income persons have bad driving records.

Another bill the Senate passed would allow the Insurance Commissioners Office to pursue restitution from insurance  companies  who break the law, and give back the premiums and fees paid by consumers--provided they are related directly to the incident(s) in question.

Now the bills move to the House to be considered.