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Keeping Credit Scores Private Can Mean Increased Insurance Costs

FINANCIAL PRIVACY

April 9, 2010

Insurance companies across Canada are increasingly using credit scores to determine the cost of premiums, CBC-TV reports, and for those who choose privacy over sharing their scores, the costs can be significant. While companies report they do not force customers to reveal their credit scores, those who choose to keep the information private can face rate hikes. Some consumers, however, say they are willing to pay that price. "My exact words were I'll eat the discount... to keep my privacy private," said Paul Renny of Ontario. Credit scoring has been banned in Ontario and Alberta for auto insurance, the report states, while New Brunswick has become the first province to ban the practice outright for any type of insurance.
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