A BILL to amend and reenact §§ 38.2-508 and 38.2-1902 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-1905.01, relating to motor vehicle insurance; use of consumer credit information to establish rates prohibited; unfair discrimination.
HB1228, as substituted, directs the State Corporation Commission’s Bureau of Insurance to study how insurers use consumer credit information or credit-based insurance scores when underwriting motor vehicle insurance policies. The study must examine whether existing Virginia insurance provisions unfairly burden policyholders, whether credit information is an appropriate factor compared with driving record and other risk-related factors, and whether the practice disadvantages poorer people, younger people, or applicants with limited or no credit history.
The bill does not itself change insurance rating rules; instead, it creates a formal review process and requires the Bureau of Insurance to report findings and recommendations to the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor by October 1, 2026. The Department of Motor Vehicles must assist in the study.
HB1228 would have no immediate substantive effect on insurance rates or underwriting standards because it is a study bill rather than a regulatory change. Its practical impact would be to direct the Bureau of Insurance to evaluate current statutes, including §§ 38.2-2212, 38.2-2213, and 38.2-2234, and to assess whether credit-based insurance scoring is consistent with fair treatment of motor vehicle policyholders. The bill focuses on potential effects on consumers, especially lower-income and younger drivers, and could inform future legislation or regulatory action if the study finds problems with current practices.
The available context suggests the bill was viewed as a consumer-protection and fairness measure, with concern centered on the use of credit information in auto insurance pricing. However, the bill was tabled in the House Labor and Commerce Committee by a 15-7 vote, indicating that while it had some support, a majority of the committee was not prepared to advance it. The absence of recorded floor debate or detailed transcript limits the ability to identify broader public messaging, but the committee action suggests mixed sentiment and insufficient consensus to move the bill forward.
The main point of contention is whether insurers should be allowed to use consumer credit information or credit-based insurance scores when setting motor vehicle insurance premiums and tier ratings. Supporters of the study appear concerned that credit-based pricing may unfairly penalize poorer drivers, younger drivers, and people with thin or damaged credit histories, and that driving record and other risk-related factors should matter more. Opponents or skeptics likely viewed the existing rating system as a legitimate underwriting tool or were unconvinced that a study was needed, as reflected in the bill being tabled in committee.