The People’s Alliance is calling on government to make use of 2010 legislation granting government the power to ban the use of credit scoring in auto-insurance rate-setting.
It has increasingly become common for the New Brunswick Insurance Board to grant requests from auto insurance companies to use credit scores in setting rates in the province. This is despite concerns raised by New Brunswick’s consumer advocate for insurance and despite open questioning on the fairness of the practice by New Brunswick’s Independent Office of the Attorney General.
People’s Alliance strongly opposes this practice and calls on the government to use 2010 legislation granting the power to ban the practice.
Although the Office of the Attorney General has previously raised concern that using credit scores in rating could negatively impact those in vulnerable socioeconomic groups, nothing has been done to prevent or halt it.
The practice allows drivers with identical vehicles and driving profiles, but different credit histories, to be charged different amounts. In 2010, New Brunswick Liberal and Conservative MLAs jointly passed legislation granting the future power for government to ban this very thing.
People are already struggling to maintain a roof over their heads, put food on their tables, and meet the most basic of essential needs for their families. With the cost of goods and services at a near-historical high and being driven by out-of-control inflation, this is just one more obstacle to our most vulnerable.
Having difficulty keeping the heat and lights on with insufficient income has nothing to do with an individual’s ability to operate a motor vehicle safely. It should not result in them paying a higher rate than another driver, all else being equal.
We call for an immediate ban on this unfair and economically discriminatory practice.