US Use of Credit Information in Insurance Resources in United States

US 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.