Credit Score Insurance Impact

In most states, yes - credit score affects insurance premiums by 20-40%. Excellent credit (750+) typically saves 15-25% compared to poor credit (<600). However, California, Massachusetts, and Hawaii prohibit or strictly limit credit-based insurance pricing. Most other states allow insurers to use credit-based insurance scores.

Improving credit score from poor (<600) to excellent (750+) can save $300-$600+ per year on insurance, depending on base premium. A 50-point improvement (e.g., 650 to 700) typically saves $100-$200 per year. Improving from fair (650) to good (700) saves about 8% of premium.

California, Massachusetts, and Hawaii prohibit or strictly limit the use of credit scores in insurance pricing. In these states, insurers cannot use credit as a primary rating factor, though some other factors may correlate with credit. Most other states allow credit-based insurance scores.

No, insurance companies use insurance credit scores, which are similar but not identical to FICO credit scores. Insurance credit scores are calculated specifically for insurance purposes and focus on credit payment history and financial stability. However, they're closely related - improving your FICO score typically improves your insurance credit score.