Under federal law (Fair Credit Reporting Act), insurance companies can use credit history as one factor that impacts your auto rate. They may assign you an insurance score based on your credit history. They use your score as one factor to decide whether to accept or decline your coverage, or how much to charge you. However, the Insurance Commissioner believes that the use of credit information in insurance is inherently unfair and in 2002, he requested a bill to limit its use. The law limits the use of certain information in credit scoring.
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