Soaring Insurance Rates?
The Concern
A growing number of insurers are using a person’s credit score to measure their insured risk on personal property insurance. This has led to an increase in insurance premiums or a denial of insurance outright to many Ontario citizens.
Who’s Affected?
The use of credit scoring impacts consumers who can least afford it. Most affected are newcomers to Canada, the unemployed, single income families and small business owners utilizing lines of credit. The use of credit scoring is not in the public interest.
Ontario does not allow this practice in auto insurance and it should not be allowed for home or other personal lines.
What’s the Solution?
New Brunswick and Newfoundland have announced they are banning the practice entirely and the Insurance Brokers Association of Ontario (IBAO) is asking the Ontario Government to do the same.
We are asking you to reach out to your local Member of Provincial Parliament (MPP). You will find all of the necessary points of reference below which will properly prepare you for this outreach.
What Can You Do?
Have you recently noticed that your insurance premiums have increased? It might be because of your credit score. Check with your insurance company to see if they measure your rate by including your credit score as a major factor.
Get Political
We also suggest contacting your local MPP. Your MPP may be surprised to hear, as are many Canadians, that this practice is taking place. We’ve included some key points below, which you can refer to during your meeting.
Your Story and Key Points
Write to your MPP and request a meeting. This issue rests in the hands of Ontario’s key decision makers and we need to bring awareness to the situation. Your involvement will show Ontario’s decision makers the severity of this issue and illustrate just how many Canadian families are being affected by this practice.
- Surely, if the Ontario government feels it is not right to use credit scoring in auto insurance, then it can’t be justified for my home insurance. And clearly, the New Brunswick and Newfoundland governments also understand the unfairness of this practice.
- I am asking that you put an end to this unfair practice and ban the use of credit scoring to determine the price I pay for my property insurance.
- I am here today to urge you to ban the use of credit scoring to determine how much I should pay for my home insurance. My insurance company, [insert company name here], has just notified me that my insurance premium is going up by [x%] or [$x]. I think this is very unfair.
- I have been with this company for [x years]. My broker tells me that my rates are going up because the insurance company is using my credit score. I don’t understand what my credit score has to do with my insurance rate, especially since nothing significant has changed regarding my home.
- My broker also tells me that credit scoring is banned from underwriting auto insurance in Ontario, and that New Brunswick and Newfoundland have announced that they are banning credit scoring entirely from being used in personal property insurance, including home insurance.
Contact your MPP
Visit: www.elections.on.ca to find your electoral district and MPP contact information.
Your initial step should be to write to your MPP to request a meeting. Stress that you would like meet with them to discuss this important issue in the next few weeks.
We have provided a Word template to help with writing the letter to your MPP.
Support the New Bill 130: The Homeowners Insurance Credit Scoring Ban Act, 2010
Liberal MPP Mike Colle introduced a private member's Bill on November 4, 2010, calling for a ban on the use of credit scores to determine property insurance rates. The Bill is posted on the Ontario Legislative Assemby's Website.
Support Bill 130 by emailing MPP Mike Colle at mcolle,mpp.co@liberal.ola.org.