Does my credit score affect my auto insurance rate?

Yes — in most states. Carriers use credit-based insurance scores (different from your standard credit score) to predict claim likelihood. Statistically, drivers with lower insurance scores file more claims, so they pay more.

States that ban or restrict credit-based insurance scoring for auto:

• California
• Hawaii
• Massachusetts
• Michigan (limited use)
• Maryland (homeowners only)
• Washington (temporarily restricted)

In states that allow it, credit can affect your premium by 50% or more. If your credit improves significantly, request a rate review at renewal — you may qualify for a lower rate.

If you’re disputing a credit-related rate, ask your insurer for the specific factors affecting your insurance score. You’re entitled to an explanation under federal law.