Direct answer
Yes, in most states, insurers use credit-based insurance scores to determine premiums because data suggests a correlation between credit history and the likelihood of filing a claim, though some states explicitly prohibit this practice.
State insurance commission regulations regarding the use of credit information in premium underwriting. For additional information about how states regulate the use of credit-based insurance scores, see the National Association of Insurance Commissioners‘s state insurance regulation resources.
What this means for you
Yes, in most states, insurers use credit-based insurance scores to determine premiums because data suggests a correlation between credit history and the likelihood of filing a claim, though some states explicitly prohibit this practice.
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