Princeton, NJ (PRWEB) December 6, 2009
According to a national study conducted by The Federal Trade Commission (FTC), 92 percent of auto insurance companies use credit scores as rating and underwriting factors for car insurance policies. CURE Auto Insurance strongly opposes using a person's credit score to determine their auto insurance rates and is pleased to offer a series of tips for consumers on how to combat the unfair practice.
"CURE has been a leader in speaking out against unfair rating and underwriting practices since its inception," said Eric S. Poe, Esq., CPA, COO of CURE Auto Insurance. "We don't believe that a person's credit score is representative of how well they drive. The use of credit scores unfairly discriminates against working class, middle, and lower-income drivers."
A FICO credit score only apportions 35 percent of a person's credit score to payment history, while the second highest factor of 30 percent is related to a person's "debt utilization" which is indirectly based upon a person's annual income. "Additionally, with unemployment surpassing 10 percent, credit card debt is a matter of survival for millions of Americans. Credits scores are nothing more than an income proxy and the unfair practice of using them in setting rates needs to be stopped," added Poe.
CURE Auto Insurance offers the following tips to help drivers get the best, most equitable rates regardless of credit scores and / or income levels:
1. If you have less-than-perfect credit, call your state Department of Insurance and ask them for a list of auto insurance companies that DO NOT use credit to determine rates.
2. If your rates go up because of your credit score, consider switching insurers. Some auto insurers that choose not to use credit score are: CURE Auto Insurance and New Jersey Manufacturers.
3. If you feel it is wrong for auto insurance companies to use credit scores in determining rates, contact your local and / or state legislator and voice your opposition to their use. Most people do not believe writing a letter or calling your legislator makes a difference, but you would be surprised how much it really does.
CURE writes policies in Pennsylvania and New Jersey and has never used credit scores in its rating or underwriting. Additionally, Poe has actively testifying across the country, revealing the industry's use of credit scores and other income proxies in setting rates, and calling for the ban of the use of credit scores, education and occupation. Most recently Poe testified in 2008 in Washington D.C. House of Representatives to support the bill (Watt - N.C.) to ban the use of credit scores for consumer insurance on a federal level.
For more information on CURE please visit http://www.CURE.com or call 800-535-CURE.
About CURE Auto Insurance
Citizens United Reciprocal Exchange, (CURE) is a not-for-profit reciprocal exchange headquartered in Princeton NJ. Founded in 1990 by New Jersey Insurance Commissioner James J. Sheeran and award-winning insurance expert, Dr. Lena Chang as answer to the insurance crisis in New Jersey, CURE continues to lead the way as the not-for-profit solution for responsible drivers and the "cure" for the continuously evolving auto insurance problems. CURE is currently available in New Jersey and Pennsylvania. More information can be found at http://www.CURE.com or by calling 800-535-CURE.
R&J Public Relations
For Immediate Release
CURE Auto Insurance Supports Ban of Credit Scoring in Setting Auto Insurance Rates