# US credit-based insurance score regulation

> Live situation record from CLSTR: https://clstr.news/situations/us-credit-based-insurance-score-regulation
> Updated: 2026-10-23T21:43:07.000Z. Sources: 6. Developments: 2.

In the United States, auto insurers frequently utilize a credit-based insurance score (CBIS) to predict claim likelihood and determine premium costs. While this metric shares data factors with standard FICO scores—such as payment history and debt levels—it is a distinct proprietary tool used by approximately 95% of U.S. insurers in states where the practice is legal.

Major financial institutions use credit bureau data for lending, but insurers apply these metrics specifically to underwriting and pricing. This has created a patchwork regulatory landscape across the country. While the practice remains widespread, an increasing number of states are moving toward restricting or prohibiting the use of credit data in insurance pricing due to concerns regarding fairness and the financial impact on lower-income drivers and communities of color.

## Timeline

### 2026-10-23: Credit-based insurance scores impact US auto insurance rates

Most U.S. auto insurers use proprietary credit-based insurance scores to set premiums, though some states are restricting the practice to address fairness concerns.

4 sources. https://clstr.news/cluster/credit-based-insurance-scores-impact-us-auto-insurance-rates

### 2026-10-17: Credit scores and insurance premiums

Insurers and banks use credit data differently; insurers often use credit-based insurance scores to set premiums, while banks like Chase and Citibank use bureau data to approve credit cards.

5 sources. https://clstr.news/cluster/credit-scores-and-insurance-premiums

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Cite as: US credit-based insurance score regulation. CLSTR, https://clstr.news/situations/us-credit-based-insurance-score-regulation