Credit score

Does Credit Score Affect Car Insurance?

North Carolina law allows insurance companies to use your credit information when determining your policy.

CHARLOTTE, NC — Recently, WCNC Charlotte verified that red cars don’t cost more to insure. Since then, VERIFY has received many comments from users saying that your credit score can affect the cost of car insurance.

Credit scores play a role in many purchases, but do they really determine how much you pay for car insurance?

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OUR SOURCES:

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THE ANSWER:

Yes, your credit score takes into account the amount you pay for your car insurance.

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WHAT WE FOUND

Under North Carolina law, insurance companies licensed to sell home and auto insurance can use credit card scores to determine your insurance premiums. The North Carolina Department of Insurance indicates that insurance companies believe that credit history can be used to predict insurance claims filing activity.

State law allows insurance companies to use your credit information when determining your policy. However, insurance companies are not allowed to use your credit score as the sole reason to terminate an insurance policy or change your policy rate.

Other factors go into determining your insurance premiums, such as your driving record, age, gender, etc.

Contact Meghan Bragg at [email protected] and follow her on Facebook, Twitter and instagram.


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