In rebuttal to this report “Neil Alldredge, senior state advocacy director for the National Association of Mutual Insurance Companies, said the article ‘rehashes false claims and specious arguments that were put to rest long ago after insurance scoring was subjected to rigorous analysis by university researchers and government agencies such as the University of Texas.’”
“Credit scores used by insurance companies weigh credit data differently from traditional lender scores and therefore insurance scores can penalize even those consumers who use credit reasonably” according to Consumer Reports.
Alldredge responded to that allegation, “that insurers use credit scores to predict loss while lenders use them to calculate probability of repayment.”
If this were true there would be an uproar among people with high credit scores who were paying higher then average insurance premiums.
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