Ban on credit scores may hinder auto insurance reforms, analyst says

A financial ratings firm says the state's ban on using credit scores and socio-economic factors to make auto insurance decisions could hamper the shift to a more competitive market.

Fitch Ratings issued a report today on the move in Massachusetts away from heavily regulated auto insurance.

The state prohibits insurers from using factors such as credit history and marital status to decide whether to insure a driver and in setting rates.

Fitch Ratings says those restrictions will discourage national insurers from entering Massachusetts.

As the new market is phased in, Massachusetts still has 19 auto insurers, the same as last year.

Progressive Insurance said last month it plans to enter the market, and state officials say others have expressed interest.
(AP)

Read the Globe's coverage of the changes coming to the state's auto insurance system here.