More than 8,000 Oregonians Use Credit Scores
The reports in the Oregonians saved $ 800,000 last year under a new law that insurance companies’ lower premiums if a customer’s credit score improves, officials said Thursday. More than 8,000 customers took advantage of the new Oregon law, the Oregon Insurance Division said, saving about $ 100 per application. The law gives customers the right each year to ask their insurer to reassess their homeowners or auto insurance based on their credit history. Insurers can not under law, to increase premiums if the customer credit score got worse. But they should lower rates if the customer’s credit history improves.
“What have you got to lose by asking, really,” said Cheryl Martinis, spokeswoman for the division, which collected data from 11 major insurers. Senate Bill 377 authorized insurers for a customer credit history into account when determining the coverage and sets rates for new policies. But it barred them from using a credit history or an insurance score at renewal to an adjustment of the policy, unless the consumer demands. Insurers were not obliged to inform customers of the change, although State Farm has included a message about any new policy statements, company spokesman Jeff Aeschliman said. And then maybe it was early reports before end of this weekend.