Discover Which U.S. States Prohibit the Use of Credit Scores in Determining Auto Insurance Rates
Thursday, 25 April 2024, 15:00
Factors Influencing Auto Insurance Rates
The rates drivers pay for auto insurance coverage vary based on several factors, including age, driving record, location, vehicle type, and credit score. However, in some states, credit scores are not used to determine insurance rates.
U.S. States Where Credit Scores Don't Affect Auto Insurance Rates
- California: Car insurance companies are prohibited from using credit scores to determine rates.
- Hawaii: State laws prevent insurers from considering credit ratings for auto insurance pricing.
- Maryland: Insurers cannot base decisions solely on credit history.
- Massachusetts: Credit information is not used to determine auto insurance rates.
- Michigan: Credit scores are not the sole basis for policy decisions.
- Oregon: Insurers cannot refuse coverage based on credit.
- Utah: Credit scores are one of multiple factors considered for policy offering.
Impact on Financial Situation
Drivers residing in states allowing credit-based insurance scores may face higher premiums based on creditworthiness. Understanding state laws and exploring options with cheaper insurers can lead to potential savings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.