Use of Credit Information in Insurance Resources

For the last several years, insurance companies have been using credit information to determine a consumer's level of risk before selling or renewing auto, home or renter insurance policies.  The insurance companies believe that there is a direct correlation between a consumer's financial stability and risk of filing an insurance claim.  Insurers may use a consumer's credit score as one factor in assigning premiums, deciding whether to accept or decline coverage or in the decision to place a consumer with a nonstandard (generally higher priced) insurer.


NCSL Information

NCSL Publications

Other Information


Last Update:  October 14, 2010

NCSL Staff Contact:  Heather Morton, (303) 364-7700, Denver


NCSL Publications

Credit Reporting: A Primer for Policymakers, August 2006

The Roar Over Credit Scores, State Legislatures, October/November 2004


State Reports:

Credit-Based Insurance Scoring Study
Colorado Division of Insurance, January 2010

Use of Credit Scores by the Insurance Industry: Iowa Consumers' Perspective
Iowa Insurance Division - St. Ambrose University, December 2009

Use and Impact of Credit in Personal Lines Insurance Premiums Pursuant to Ark. Code Ann. §23-67-415
Arkansas Department of Insurance, July 2007

Report to the 79th Legislature - Use of Credit Information by Insurers in Texas
Texas Department of Insurance, December 30, 2004

Report on the Credit Scoring Data of Insurers in Maryland
Maryland Insurance Administration, February 2004

Insurance-Based Credit Scores:  Impact on Minority and Low Income Populations in Missouri
Missouri Department of Insurance, Statistics Section, January 2004

Effect of Credit Scoring on Auto Insurance Underwriting and Pricing
Office of Washington State Insurance Commissioner, January 2003


Federal Reports:

Report to the Congress on Credit Scoring and Its Effect on the Availability and Affordability of Credit
Board of Governors of the Federal Reserve System, August 2007

Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance
A Report to Congress by the Federal Trade Commission, July 2007