Washington State

Office of the Attorney General

Attorney General

Bob Ferguson

Did you know your credit score is factored into your insurance rate? The Federal Trade Commission recently conducted a study and found that these scores are effective predictors of the claims that consumers will file. The insurance industry says, and the FTC report apparently affirms, that the lower your credit score, the more likely you are to file claims. You therefore pay higher premiums.

Our state laws restrict how credit history may be used in evaluating your insurance risk. Insurance companies can’t use your credit history to cancel or refuse to renew your current insurance policy. They also can't deny you coverage or determine rates based on these factors:

  • An absence of credit history
  • Number of credit inquiries
  • Collection accounts identified as medical bills
  • Purchase of a vehicle or house that adds a new loan to your history
  • Your use of a particular type of credit card, debit card or charge card (such as a department store or gas credit card)
  • Total amount of available credit

The Office of the Insurance Commissioner's Web site explains the practice and our state's law in more detail. UPDATED LINK here.


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