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.
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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