2. I still stand by my assertion that simply having bills does not cause you to have bad credit. It's by not paying them that you get bad credit. Which goes right back to the auto insurance company's right to charge more to people who don't pay their bills.
Having bills that you can't/don't/won't pay causes you to have bad credit.
Filing for bankruptcy because there is no way you can pay your medical bills (which happens FREQUENTLY in this country) causes you to have bad credit.
But none of that is really relevant. It's reasonable to charge people with bad credit more if you're worried that you will provide them services that they won't pay for. You're taking a risk that you'll give them something for nothing. Credit cards, even utilities, that makes sense.
But car insurance doesn't work that way. They don't give you anything unless you get in an accident, and if you haven't paid your bill with them then you're simply not covered. It would be a bit like charging someone more to put something on layaway if they have bad credit.
Now, if there's some indication that people with poor credit scores are bad drivers, that's a different story, but that's not what we've been taking about here.