Okay to Consider Credit Scores When Setting Insurance Rates

By: Associated Press
By: Associated Press

The Michigan Supreme Court says it's legal for insurance companies to consider credit scores when setting rates.

The court says state regulators exceeded their authority when they banned the practice as discriminatory. It was a 4-3 decision Thursday with Justice Elizabeth Weaver joining the court's three most conservative members.

Insurance companies say people with high credit scores make fewer claims and deserve lower rates than people with low credit scores.

In a dissent, Chief Justice Marilyn Kelly says uncertainty about the accuracy of credit reports make them an unreliable tool to set rates

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