Auto Insurance Resources

Does Credit Affect Car Insurance Rates?

Credit-related insurance rating is regulated at the state level, so the answer depends on where you live and the insurer involved.

LowestPriceFinder Editorial Team · Reviewed August 27, 2026

Important: Insurance requirements, availability, rating practices and policy terms vary by state and insurer. Verify details that apply to you.

Credit and insurance are not the same everywhere

Some insurers in some jurisdictions may use credit-based insurance information as one permitted rating or underwriting factor. State laws can restrict or prohibit particular uses, so there is no single nationwide rule.

It is only one potential factor

Where permitted, credit-related information may be considered alongside other variables such as driving history, vehicle, location, coverage choices and household information. Insurers can use different models and weights.

Why your state matters

Insurance rating is state-regulated. If you want to know whether or how credit-based insurance information can be used where you live, consult your state department of insurance.

What to do when comparing

Provide accurate application information and compare equivalent coverage from more than one source. If an insurer takes an adverse action based on consumer-report information, applicable notices and consumer rights may apply.

Important: This page is general educational information, not a statement of the law in any particular state.
HOW THIS GUIDE WAS PREPARED

Prepared by the LowestPriceFinder Editorial Team using consumer guidance from insurance regulators and the NAIC. See our Editorial Standards & Research Policy.

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