This story is republished from NM Political Report, a nonprofit news outlet, as a part of our commitment to bringing you the best in independent news coverage that matters to Albuquerque.
By Susan Morée
A bill to prevent potential discriminatory car insurance rates passed by a 6-2 vote on Wednesday.
HB 80, Personal Insurance Credit Info Act Changes, sponsored by Rep. Liz Thomson, D-Albuquerque, would prohibit insurance companies from using credit scores as part of the algorithms they use to determine car insurance premiums. If enacted, insurance premiums would increase for individuals who have high credit scores and decrease for those with low scores.
Insurance companies are lobbying against the bill.
Superintendent of the Office of Insurance Alice Kane said her agency supports the bill and believes credit scores negatively and arbitrarily impact low-income drivers.
“It’s just a credit score,” Kane said. “It inadvertently discriminates.”
House Minority Whip Alan Martinez, R-Española, hypothesized that the bill could result in him paying a higher insurance premium even though he pays his bills on time.
Thomson said poor credit does not equal responsibility.
“People who live in poverty are not ignoring paying their bills. They simply can’t afford it,” Thomson said.
Kane said New Mexico has a large number of uninsured motorists on the road and her agency believes more drivers would get insurance if they could afford it. She said the bill would, if enacted, help protect insured motorists who are involved in accidents with uninsured drivers.
The bill passed along party lines and heads next to House Commerce and Economic Development.