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CFO Sink Opposes Use of Credit Scoring by Auto Insurance Companies

3/19/2009

CONTACT:  Kyra Jennings or Kevin Cate
(850) 413-2842
 
TALLAHASSEE — Florida Chief Financial Officer Alex Sink today held a press conference to oppose the use of credit scoring when determining the rates and availability of auto insurance for Floridians.  CFO Sink was joined in her opposition to the use of credit scoring by Sean Shaw, Florida’s Insurance Consumer Advocate.
 
“Right now, people whose credit is reduced or who have been hit hard financially could see their auto insurance rates jacked up or find they are not even able to get coverage -- and that’s just wrong,” said CFO Sink.  “Because of the challenging times everyday Floridians are facing, I am opposed to the use of credit scoring when determining the availability and cost of auto insurance.  We should not be kicking Floridians when they are down.”
 
Currently, consumer credit scores are used by many auto insurance companies for underwriting purposes, including setting rates and determining coverage eligibility.  CFO Sink noted today that she has been unimpressed by explanations from auto insurance companies about why they need to use credit scores, especially in these challenging economic times.
 
“Right now, Floridians are being hit hard, creating more debt, and even people who are using credit responsibly are seeing their limits decreased because of the economic times,” CFO Sink continued.  “I don’t think its right that those same Floridians will now see a rate hike on their auto insurance despite no change in their driving record.”