Judge: AG has authority to investigate potential race discrimination by auto insurers
Nov 8, 2022, 1:25 PM
The Washington Department of Transportation (WSDOT) strongly suggests traveling during non-peak times during the holiday weekend. (Photo from KIRO 7)
(WSDOT)
Washington Attorney General Bob Ferguson’s office has confirmed that the attorney general has the authority to investigate potential racial discrimination by auto insurers PEMCO and Progressive.
The office said anyone who may have a civil rights complaint should go online and fill out a general consumer complaint form.
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The AG said the companies made the investigation public by fighting to quash an inquiry into using credit history to pick and choose customers and how much they were going to be charged for car insurance.
A Thurston County Superior Court judge rejected the insurers’ efforts to stop an investigation of potential racial discrimination against Washington drivers.
The companies both use consumer credit histories, or “credit-based insurance scores” to decide whether to sell, and at what price to sell, their auto insurance products.
Ferguson’s office said there is evidence that the practice disproportionately harms people of color.
The AG said the companies are charging people with lower credit scores much more.
KIRO 7′s Jesse Jones has done landmark investigative work into how credit scores factor into insurance rates.
A study from the Consumer Federation found that drivers with low credit scores and perfect driving records can pay up to 79% more for insurance than drivers with excellent credit, in a state minimum policy.
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