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SB 693

Motor vehicle insurance; unfair discrimination based on individual's consumer credit info., report.

2026 Regular Session Introduced by Angelia Graves and 1 co-sponsor

Virginia bill bans insurers from using consumer credit scores to set motor vehicle insurance rates, designating the practice as unfair discrimination.

Approved by Governor-Chapter 902 (effective 7/1/2026)
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Bill Summary · SB 693

Legislative bill overview

SB 693 prohibits motor vehicle insurers in Virginia from using consumers' credit information as a factor in setting insurance rates or determining coverage eligibility. The bill requires insurers to submit a report documenting their use of credit-based information and establishes this practice as unfair discrimination under Virginia insurance law.

Why is this important

Insurance premiums significantly impact household budgets, and credit-based pricing can create barriers for lower-income Virginians and those recovering from financial hardship to obtain affordable coverage. This policy touches on the intersection of financial services regulation, consumer protection, and access to essential transportation insurance.

Potential points of contention

  • Insurance industry opposition: Insurers argue that credit information is statistically predictive of claims and that removing it will increase costs for lower-risk consumers or reduce profitability
  • Rate impact uncertainty: The bill's effect on overall premium costs—whether rates rise, fall, or vary by demographic group—is unclear and contested
  • Definition of "unfair discrimination": Disagreement exists over whether using credit scores constitutes discrimination or simply reflects actuarial risk assessment
  • Reporting burden: The mandate to report credit usage practices creates compliance costs for insurers

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

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