Prohibits the consideration of an applicant's credit history in determining automobile insurance rates.

Rhode Island Bill: Banning Credit History in Auto Insurance Pricing

This bill would prevent auto insurance companies in Rhode Island from using a person's credit history or credit score when deciding how much to charge them for car insurance. Currently, many insurance companies factor in credit information — such as whether someone has debt, missed payments, or a low credit score — as part of their formula for setting rates. If this bill becomes law, insurers would have to base their rates on other factors, such as driving record, without penalizing customers for their financial history.

The bill would primarily affect Rhode Island residents who have poor, limited, or no credit history, such as young adults, lower-income individuals, or people who have gone through financial hardships like medical debt or job loss. Supporters of similar laws in other states argue that credit history is not a fair predictor of driving ability, and that using it can result in people paying more for insurance simply because of their financial circumstances rather than how safely they drive. Insurance companies, on the other hand, often argue that credit data helps them more accurately predict risk and price policies fairly.

Currently, the bill has been referred to the Senate Commerce Committee and has been recommended to be held for further study, meaning lawmakers are not yet moving it forward for a full vote. A hearing is scheduled for March 31, 2026. The bill's future remains uncertain as it continues through the legislative process.