Insurance Credit Scoring

The insurance industry has increasingly been using credit scores to determine policyholders’ rates.  Credit scores are determined based on a person’s payment history, amounts owed, length of credit history, new credit, and types of credit.  None of these criteria directly relate to a policyholder’s insurance risk.  In fact, many consumers who have never filed an insurance claim find their insurance rates rising based solely on their credit score. Study after study has shown that credit scoring has a disproportionately negative impact on people with lower incomes, senior citizens, those who have experienced a medical bankruptcy, and racial minorities.

Have you been negatively impacted by insurance credit scoring? Please share your story with us.

Visit our Insurance Credit Scoring Tips page for helpful tips on how to get your credit score and resources for protecting yourself as a consumer.

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Latest Headlines

Auto Insurers Don’t Play Fair with Customers, Study Finds

July 24, 2013—The Consumer Federation of America blasted insurance companies that use education and occupation to set rates for auto coverage, calling it an “unfair and discriminatory” way to price their policies. Based on its analysis of the country’s top 10 insurance companies, CFA found price quotes that were as much as 40 percent higher for drivers... Read more »

Eye on Texas Blog

Rathgeber Appointed Insurance Commissioner

May 27, 2013—Governor Rick Perry has appointed Julia Rathgeber, Lt. Governor David Dewhurst’s Deputy Chief of Staff, as Texas Insurance Commissioner. Her appointment comes after Commissioner Eleanor Kitzman was not confirmed by the Texas Senate for a full term. The Texas insurance market faces important challenges. With higher premiums, larger deductibles, and expanded exclusions, Texas policyholders are paying more and... Read more »

Eye on Texas Blog

Kitzman Not Confirmed, Leaves TDI

May 27, 2013—After public concern over Insurance Commissioner Eleanor Kitzman’s anti-policyholder decisions during her tumultuous 21-month tenure, the Texas Senate has chosen to not confirm Commissioner Kitzman for a full term, according to numerous media reports. Senator Glenn Hegar, Chair of the Nominations Committee, said, “Gauging the votes in the last couple of days, it does not... Read more »

Research & Reports from Insurance Credit Scoring View more reports »

Research & Reports
Research & Reports

The Texas Watch Foundation, a non-partisan 501(c)(3) organization, conducts research and public education activities on consumer law, consumer protection and civil justice issues. Read More »

Court Watch
Court Watch

Court Watch, a program of the Foundation, documents the role and impact of the Texas civil court system on Texas families and Texas public policy. Read More »