State politicians stick red tape on auto insurance

State politicians stick red tape on auto insurance

State politicians stick red tape on auto insurance by Timothy Montales

The state House in Delaware has approved legislation that restricts the factors that insurers can utilize in establishing automobile insurance rates. The bill, which is a toned-down version of legislation that had stalled amid industry groups’ opposition, will now go to the Senate after being approved on a 24-14 vote.

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The original bill restricted the use of age, marital status, credit scores and income in creating auto insurance premiums. Instead, insurers must establish rates based on drivers’ claims, experience, safety record, mileage, and years of driving experience.

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The revised measure establishes acceptable uses of credit information in establishing rates, and restricts companies from increasing rates simply because a customer is 75 or older or because a spouse’s death triggered a change in marital status, as reported by The Washington Times.


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4 Comments
  • Kristina 6/16/2017 8:17:19 AM
    What State is this in?
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  • Carla 6/16/2017 12:50:10 PM
    First, I don't understand why the insurance industry does not push back on this and help the consumer and the Legislators understand how we underwrite,,,anything. Using age, etc IS the experience, claims, etc. The type of car, etc IS the cost of the claim. I am not sure if insurance companies are making so much money that they don't care to fight, or they have figured out ways to get around this stuff. It is true that the rating for personal lines is so complex that the agent can't explain it to the insured. It needs to be more simply put and the agent needs to know why the premium goes up. I was an Underwriter years ago and rated auto/homeowner etc with tables that were based on age, distance you drove, type of car, and your experience, and then the factor of the insurer. At one time, we could also check credit reports etc but then that was barred for a while which I thought was good. Now, that is back. That is sad as the credit reports, controlled by the banks, are the ones who caused middle class America to lose its wealth and the scores to plummet. Where is the justice in this world?
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  • Anon 6/16/2017 12:51:29 PM
    First line of the article: The state House in Delaware has approved legislation that restricts the factors that insurers can utilize in establishing automobile insurance rates.
    Post a reply