End Credit-Based Insurance Pricing in Alabama

Alabama State Legislature, Alabama Department of Insurance, and Governor Kay Ivey

The Issue

Auto insurance should be based on how you drive—not on your credit score. But in Alabama, credit-based insurance scoring unfairly increases premiums for responsible drivers, even if they have perfect driving records.

I’ve driven safely for over eight years—no tickets, no crashes—yet my insurance rates keep rising. Why? Because of a credit score that has nothing to do with my driving ability. This system punishes everyday drivers and forces millions to pay higher premiums for reasons unrelated to risk.

A Consumer Reports study found that credit scores can cause car insurance rates to vary by hundreds, even thousands, of dollars—regardless of driving history. Unlike speeding or accidents, managing credit is not a measure of driving skill.

Why This Matters

  • Many Alabama drivers pay significantly more due to this unfair system.
  • The Federal Trade Commission found that credit-based insurance scores disproportionately impact African Americans and Hispanics, making insurance unaffordable for many.
  • Other states, like California and Hawaii, have already banned this practice—Alabama can follow.

What We’re Fighting For
Just as the insurance industry promotes safe driving habits to lower risk, we demand a fair insurance pricing system that reflects actual driving behavior, not financial status.

It's time to take action. We demand that Alabama lawmakers and regulators ban the use of credit-based insurance scoring.

✍️ Sign this petition today and help us fight for fair, risk-based auto insurance in Alabama!

https://actionnetwork.org/groups/alabama-fair-insurance-initiative

To: Alabama State Legislature, Alabama Department of Insurance, and Governor Kay Ivey
From: [Your Name]

Subject: End Credit-Based Insurance Scoring in Alabama

Dear Alabama Lawmakers and State Officials,

I am signing this petition to demand that Alabama bans the use of credit-based insurance scoring in auto insurance pricing. Insurance should be based on driving risk—not on a credit score that has nothing to do with how safely someone drives.

? Why This Matters:

Safe drivers in Alabama are unfairly penalized with higher premiums based on their credit scores, rather than their driving records.
A Federal Trade Commission study found that credit-based insurance pricing disproportionately impacts African Americans and Hispanics, making auto insurance unaffordable for many.
Other states, including California, Hawaii, and Massachusetts, have already banned this practice—Alabama must follow suit.

I urge you to:
✅ Pass legislation banning credit-based insurance scoring in Alabama.
✅ Enforce fair and transparent insurance pricing based on actual driving risk.
✅ Ensure consumer protections so that no Alabama driver is overcharged based on their financial history.

Insurance should be about safety and responsibility, not about punishing consumers for circumstances unrelated to their driving behavior. Alabama families and drivers deserve fair and affordable insurance rates.

I call on you to take immediate action to end this unfair practice.

Sincerely,

"By signing this petition, you acknowledge that your name and city may be shared with Alabama lawmakers and officials as part of our advocacy efforts. Your personal contact information will remain confidential and will not be sold or shared with third parties. This petition is organized by the Alabama Fair Insurance Initiative to advocate for consumer protection and fair insurance pricing policies."