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

You must be logged in to post comments.

Password (case sensitive):
Remember Me:

Read Comments

Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Nicole Location: NY on Aug 31, 2012 at 12:08 AM
    Well, credit scores make impact almost on everything in our life. And I should say that it's right that people with higher credit scores should be eligible for lower interest rates than those with low credit scores. Credit score is one of the most important tools in our finanial life, and if you're score is good or excellent you may have lots of benefits from every financial institution you apply to. Only if you apply for cash advance loans your credit score isn't really important, because it's a specific kind of emergency financial assistance.
  • by lori Location: Jackson on Jul 24, 2010 at 02:30 PM
    God I can't wait to move the hell out of this state. I can't sell my house because they want you to give it away and now it's worth less than what I payed for it 1994. This after doing over $100,000. in improvments over the years. Way to go Michigan!!! Got anymore bright ideas?
  • by Anonymous on Jul 12, 2010 at 07:38 AM
    It is all statistics on habits of americans. Those actuary spend time coming up with ideas on how to show correspondance. Wait until they show a correlation on the about of government aid a person gets to how many claims. There will a strong claim that think that if someone collects unemployment or welfare, they are more apt to file a claim.
  • by Shane Location: Lansing on Jul 9, 2010 at 12:16 PM
    These judges must have been bribed. Time to get rid of them
  • by Anonymous on Jul 9, 2010 at 07:12 AM
    I also agree Credit scores were not for this reason, and insurance companies base prices not just on credit scores, but where you live, the car you drive, and how much you have in the bank. Oh they also supposedly use driving records, but only if its a way to raise your rates. This is the only industry where discrimination based on age, income, etc is mandatory.
  • by William Rogers Location: Lansing on Jul 8, 2010 at 10:06 PM
    Here we go again useing Credit scores for something they weren't intended for. This is just another ploy by big insurance to leverage us into paying higher rates. What does ones credit score have to do with our driving skills?
WILX 500 American Road Lansing, MI 48911 517-393-0110
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 98058954 - wilx.com/a?a=98058954
Gray Television, Inc.