Law Could Eliminate Credit Scores’ Impact on Kansas Auto Insurance Rates
Friday, January 16th, 2009
According to Jeannine Koranda of the Wichita Eagle, a bill pending in the state legislature would prevent Kansas auto insurance companies from charging different premiums to drivers with different credit ratings. Senate Bill 24 is currently waiting for a hearing in the Financial Institutions and Insurance Committee.
The bill has sponsors from both political parties, whom believe that auto insurance rates should be based primarily on a person’s driving record. Senator Oletha Faust-Goudeau also believes that using credit ratings to determine premiums has a disproportionate impact on lower socioeconomic levels: they tend to have lower credit ratings, and therefore pay more for their car insurance. This bill could change that, and lower rates for most Kansas drivers.
