Washington Attorney General Bob Ferguson’s office has confirmed that the attorney general has the authority to investigate potential racial discrimination by auto insurers PEMCO and Progressive.
The bureau said anyone who might have a civil rights complaint should go online and fill out a general consumer complaint form.
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The AG said the companies made the inquiry public as they fought to quash an investigation into the use of credit history to choose customers and how much they would be charged for car insurance.
A Thurston County Superior Court judge has dismissed efforts by insurers to halt an investigation into potential racial discrimination against Washington drivers.
Companies both use consumers’ credit histories, or “credit-based insurance scores,” to decide whether or not to sell their auto insurance products and at what price.
Ferguson’s office said there is evidence the practice disproportionately harms people of color.
The AG said companies charge people with lower credit scores significantly more.
Jesse Jones of KIRO 7 has done historical investigative work on how credit scores factor into insurance rates.
A study by the Consumers Federation found that drivers with low credit scores and perfect driving histories can pay up to 79% more for insurance than drivers with excellent credit, in a minimum policy of the state.
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