Connecticut Auto Insurance Act Forbids Pricing Based on Location, Credit Rating
Wednesday, February 18th, 2009
The state Attorney General has proposed a law that would prevent Connecticut auto insurance companies from charging different rates to drivers based on their credit rating or where they live. Steve Kobak of The Hour writes that rates are especially excessive in urban areas, where residents are more likely to earn lower incomes. According to Att. General Richard Blumenthal, denying auto insurance to customers based on their credit ratings is absurd and will result in a vicious economic cycle. If that practice is not banned, there will probably be more uninsured drivers on the road, causing greater risk and higher auto insurance premiums for all.
Rates for car insurance in Connecticut are already among the most expensive in the nation, says Steve, and cost even more in Fairfield County compared to the rest of the state. The act was recently introduced in the state legislature.
