FTC Releases Report on Effects of Credit-Based Insurance Scores

by Sabrina I. Pacifici on July 24, 2007

Press release: “The Federal Trade Commission today released a report presenting the results of a study concerning credit-based insurance scores and automobile insurance. The study found that these scores are effective predictors of the claims that consumers will file. It also determined that, as a group, African-Americans and Hispanics tend to have lower scores than non-Hispanic whites and Asians. Therefore, the use of scores likely leads to African-Americans and Hispanics paying relatively more for automobile insurance than non-Hispanic whites and Asians. Credit-based insurance scores are calculated based on a consumer’s credit history information. Insurance companies use them to predict the claims that consumers are likely to file, and to determine the premiums they are charged.”

  • Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance: A Report to Congress By the Federal Trade Commission (July 2007)
  • Statement of Chairman Majoras, Commissioner Kovacic, and Commissioner Rosch
  • Dissenting Statement of Commissioner Harbour
  • Concurring Statement of Commissioner Leibowitz
  • Consumer Information: Need Credit or Insurance? Your Credit Score Helps Determine What You’ll Pay
  • Previous post:

    Next post: