Maryland consumers with bad credit may soon benefit from new legislation aimed at removing the use of credit scores when determining rates for auto insurance policies.
The state currently prohibits home insurance companies from using credit scores to decide whether consumers are eligible for insurance, and if they are, their qualifying rate. Maryland auto insurers are not allowed to use scores for underwriting, but can use them for rating purposes, according to the Insurance Journal.
Legislators are proposing banning the use of credit scores for rating new policies, which has been met with resistance from insurers
"Numerous studies demonstrate that consumers benefit from the use of insurance scoring, and that a great majority either see lower rates or no effect," said Richard Stokes, counsel and regional manager with the Property Casualty Insurers Association of America, the news source reports.
As the proposal is still going through the legislative process, many car-owning consumers may want to check their credit reports and look for ways to improve their credit scores.
Individuals who come across a questionable item in their credit report may benefit from speaking with a credit lawyer who specializes in investigating and disputing unfair marks.