North Carolina law allows insurance companies to use your credit information when determining your policy.
CHARLOTTE, N.C. — Recently, we verified red cars don’t cost more to insure. Since then, we have gotten a lot of comments stating your credit score can affect your cost of insurance.
OUR SOURCES:
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THE ANSWER:
Yes, your credit score does factor into how much you pay for your car insurance.
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WHAT WE FOUND:
Under North Carolina law, insurance companies licensed to sell home and car insurance may use credit card scores in determining your insurance premiums. The North Carolina Department of Insurance states insurance companies believes credit history can bur used to predict insurance claims-filing activity.
North Carolina 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 for terminating an insurance policy or changing the rate of your policy.
There are other factors that go into determining your insurance rates, like your driving record, age, gender, and more.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.