Do Insurance Companies Skirt the Protections of Anti-Discrimination Laws by Using Credit Scores to Set Rates for Veterans, Seniors, and Other Protected Groups?
Published: December 30, 2025 | By VCAnalytics Data-Driven Insights for Veterans & Families
Answer: Yes
Many consumer advocates, civil rights groups, and studies argue that it does exactly skirt (circumvent or undermine) the protections and spirit of anti-discrimination laws. While the letter of the law is followed (no direct use of protected traits like race, age, income, or disability), the spirit/intent to prevent unequal treatment or barriers for protected groups is arguably undermined. Credit scores act as a proxy for those protected factors (lower incomes, medical debt from service/aging, systemic
Technically, no the practice is fully legal in most states under the Fair Credit Reporting Act (FCRA) and state regulations, with required consent and disclosure. Is it ethical? That's for you to decide based on the facts below.
Quick Take: Veteran Suicide Rates Financial Stress as a Bigger Issue, Applies Across Protected Groups
Financial stress is a major suicide trigger for veterans VA 2024 data shows veteran suicide rate at 30 per 100,000 (vs. non-veterans 18 per 100,000), with women veterans 92% higher and males 60% higher than non-veterans. Veterans with limited economic resources or in income-based priority groups have the highest rates, and financial hardships like debt are linked to poorer health and increased suicide risk (e.g., housing instability raises suicidal ideation 6x). In the general population, financial strains significantly raise suicide attempts. As a retired CPA looking at veteran advocacy on financial issues, I see this applies across the board to protected groups: seniors, minorities, low-income, immigrants facing similar debt barriers. My motto: saving lives one claim at a time because easing financial stress through benefits/advocacy can be lifesaving. So, when insurance hikes hit those already down from medical bills impacting credit (e.g., on-time payments struggles), is it kicking them further?
Quick Take: Record Rate Increases and Record Profits
Home insurance rates surged an average of 21% in 2025, with cumulative increases over 40% since 2019. Auto rates rose an average of 7.5% in 2025 (following 16.5% in 2024). At the same time, industry profits reached record levels: $169B in 2024 for property & casualty (P&C), with net income $49.1B in the first half of 2025 and premiums written up 6.1% to $561B.
Quick Take: Insurance Metrics Skewed by Big Claims, Disproportionate Impact on the Poor
Big claims (high-value disasters in affluent areas) skew overall "risk" data, but the poor file more frequent small claims out of necessity subsidizing the system. Protected groups pay 30-60% more on average due to lower scores from hardships, creating a vicious cycle in a mandatory market where options are limited for average people.
Quick Take: Profit-Driven vs. Need-Driven Mandated Duress Hits Vulnerable Hardest
Insurers profit by charging higher rates to those with lower scores the people who need coverage most (veterans with service debt, seniors on fixed incomes, minorities/low-income facing barriers). The rich have more options (shop around, absorb hikes, switch easily), so the relative impact is smaller. For protected groups in a mandated system (auto required in 48 states, home often for mortgages), consent feels like duress no real choice, limited flexibility, and higher costs when you can least afford them.
Quick Take: Where is the Oversight? Political Donations Raise Quid Pro Quo Questions
Oversight is supposed to prevent unfair pricing/gouging in essential mandated services, but industry donations (over $60M in 2023-2025 cycles) raise serious concerns: key recipients include Ted Cruz (R-TX) $409k (plus millions from finance/real estate sectors tied to insurance), Sherrod Brown (D-OH) $626k, Jon Tester (D-MT) $504k, Bob Casey (D-PA) $478k. Heavy influence in states like TX, OH, PA, MT where stronger protections often stall. With record profits amid record rate increases, why no tougher challenges? Bad optics to say the least donations flow, oversight softens, vulnerable groups pay. Average people have no voice in this system donations speak louder.
Bill O'Reilly has repeatedly called it out: "Insurance through the roof" warning about skyrocketing costs from economic policies and how everyday people are getting hammered (e.g., in Smart Life segments and No Spin News discussions).
Quick Take: Abuses in Action Proxy Discrimination Examples
- Zip code redlining: 30-60% higher charges in low-income/minority areas, even with similar risks echoes of historical discrimination. - Medical coverage loopholes: credit sneaks into health supplements via "risk scores" exploiting debt in vets, seniors, and immigrants.
Quick Take: Key Questions Answered
- Why skirting protections?
- Legal on paper, but proxy effects undermine spirit disparate impact on protected groups.
- Profit vs. need?
- Yes higher rates on those who need coverage most, with limited options in mandated markets.
- Why weak oversight?
- Donations raise quid pro quo optics amid record profits.
- Ethical?
- Facts show indirect targeting of vulnerable you decide if it's fair.
At VCAnalytics.ai, we present data-driven facts so you can ask questions and decide. These issues highlight fairness concerns in a mandated system.
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Important Disclaimer
This is educational content based on publicly available data and reports not legal, financial, or insurance advice. I am not a lawyer or licensed insurance professional. Always verify eligibility, rates, and options through official channels like VA.gov, CFPB.gov, your state insurance department, or accredited professionals. VCAnalytics.ai provides insights to empower informed decisions no guarantees, no fees, no sign-ups. Trust but verify always. Contact me directly for free consult, no pressure.
References
Drawn from FTC reports, Consumer Reports, United Policyholders, NAIC, OpenSecrets, J.D. Power, Swiss Re, VA data, and more.