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House approves auto insurance reform measure

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DOVER, Del. (AP) — The state House has approved legislation restricting the factors that insurers can use in setting automobile insurance rates.

The bill, a watered-down version of legislation that had stalled in committee amid opposition from industry groups, was approved Thursday on a 24-14 vote. It now goes to the Senate.

The original bill prohibited the use of age, marital status, credit scores and income in setting auto insurance premiums. Instead, insurers would have to set rates based on a driver’s claims experience, safety record, number of miles driven annually, and years of driving experience.

The revised measure establishes permissible uses of credit information in setting rates. It also prohibits companies from increasing rates simply because a customer is 75 or older or because a spouse’s death causes a change in marital status.

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