Insurance rates based on credit history draw scrutiny from lawmakers in some states

O2o Creative | E+ | Some state lawmakers want to ban a common practice among insurance companies that can drive up costs for consumers. Bills are pending in several state legislatures — including in Iowa , New York , Oklahoma and Pennsylvania — that would generally prohibit insurers from using consumers' credit history to set their premiums for either homeowners or auto insurance policies, or both. The so-called credit-based insurance scores used by insurers measure whether someone is likely to file a claim — the lower the score, the higher the likelihood. And, in turn, the higher the premiums they might be charged. "This is the case even if you have a perfect driving record or your risk is relatively low," said Michael DeLong, research and advocacy associate at the Consumer Federation of America, a nonprofit that advocates for consumer rights and supports legislative efforts to change the practice.