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HB 657

An Act amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, providing for prohibited activities related to use of credit history of insured.

2025-2026 Regular Session Introduced by Missy Cerrato and 11 co-sponsors

HB 657 prohibits Pennsylvania insurers from using credit history in setting rates and coverage eligibility, aiming to improve insurance access for lower-income consumers.

Referred to Insurance
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WeVote Research Nonpartisan
Bill Summary · HB 657

Legislative bill overview

HB 657 would amend Pennsylvania's insurance law to prohibit insurance companies from using consumers' credit history as a factor in determining insurance rates, coverage eligibility, or policy renewal decisions. The bill restricts insurers' ability to apply credit-based insurance scoring—a common industry practice that correlates credit behavior with claim likelihood.

Why is this important

Credit-based insurance scoring disproportionately affects lower-income and minority populations, potentially creating barriers to affordable insurance access regardless of actual driving records or claim history. This legislation could increase insurance accessibility and affordability for financially vulnerable consumers while shifting risk assessment methodology for Pennsylvania insurers.

Potential points of contention

  • Insurance industry opposition: Insurers argue credit history is a statistically valid predictor of claims and that restricting its use will force them to raise rates across the board or reduce coverage options, ultimately harming all consumers
  • Rate implications: Opponents claim removing a risk-assessment tool will increase premiums for safe drivers with good credit to subsidize higher-risk pools, raising affordability concerns for different demographics
  • Competitive disadvantage: Pennsylvania insurers operating under stricter rules than neighboring states may face competitive pressures or reduced profitability, potentially limiting market options

Compiled from official sources — confirm details with the bill’s official record.

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