San Antonio News-Express, Nov. 20, 2003

David Hendricks' Nov. 12 column ("Insurers know your credit score"), while an honest attempt to understand the issue, contains false information about credit-based insurance scoring. This does a disservice to Texas consumers, many of whom benefit from insurance scoring.

Recent studies by the University of Texas and EPIC Actuaries confirm the relationship between a person's credit and their potential for filing an insurance claim. People with positive credit information are less likely to incur losses. Combined with factors such as years of driving experience, previous crashes and the age of a vehicle or home, insurance scores are another way to differentiate between lower and higher insurance risks. Without credit-based scoring, lower-risk customers would pay more to subsidize individuals who pose higher risks. Now that's unfair.

According to the June 2003 EPIC Actuaries study, credit-based scores are among the three most important risk factors for the six automobile coverages studied, even more so than a person's driving record.
Credit-based scoring is an objective tool to establish fair premiums for Texas consumers. Let's resist the urge to embrace misinformation.

Beaman Floyd, Texas Coalition
for Affordable Insurance Solutions,
Austin