GREENSBORO, N.C. — You're in for wet and rainy roadways for the next couple of days. AAA estimates wet pavement contributed to nearly 1.2 million traffic crashes a year.
But your'e a good driver, right? You know to increase your following distance, you know to have your headlights on and you know not to drive with your hazards on so other drivers can see when you're changing lanes!
Good drivers are usually rewarded by lower insurance rates. However, some insurance companies are charging you more--because of something that has nothing to do with your driving. It's your credit score.
Since the 1990s auto insurers have used your credit score to help estimate which customers might file more claims then others. And how you manage your finances is factored into your insurance premium pricing.
Right now, only three states ban the use of credit scoring to set pricing for auto insurance--- California, Massachusetts and Hawaii. In those states, insurers base pricing on other factors, such as a customer's driving record, years of experience and miles driven per year.
There is a proposed law making it's way through Congress, HR1756 would ban all states from using credit scores to determine costs. It is in committee right now. There are 26 bill co-sponsors and Congressman G.K. Butterfield from NC District 1 is on the list.