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Texas Department of Insurance
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How your credit score can affect your insurance rates


Most insurance companies use your credit history to help them decide whether to sell you insurance and how much it will cost. Here’s what you should know about your credit and how it can affect your insurance.
Person checking credit history on smart phone.
  1. What they check

    When reviewing your credit, most companies look at:

    • How many open accounts you have.
    • How much you owe compared to your available credit.
    • Any past due payments.
    • How often you apply for new lines of credit.
  2. What’s off limits

    Insurance companies can’t use against you:

    • Medical debts that went to collection.
    • Credit checks related to insurance coverage.
    • Credit checks from businesses that you didn’t request.

    If you have several credit checks in a 30-day period when shopping for a home or auto loan, the insurance company should only count that as one.

  3. Your rights

    Insurance companies can’t charge you more or not insure you if your credit score was hurt by these events:

    • A major illness or injury.
    • The death of a spouse, child, or parent.
    • Temporary job loss.
    • A recent divorce.
    • Identity theft.

    The insurance company has to tell you within 30 days if it’s denying you coverage or charging more because of your credit report. You can ask the company to make an exception if your credit was affected by any of the protected events.

    It’s always a good idea to check your credit report regularly to look for changes or errors. Credit reporting companies allow one free credit report each year.



Questions? Call us at 800-252-3439.

Last updated: 5/15/2024