Does your state let insurers price you on your credit?
Three states ban it, four more restrict it, and four have 2026 bills that could add restrictions. Every other state currently allows it. Here's the status where you live, each one tied to a named, dated source — last verified July 17, 2026.
Quick answer
California, Massachusetts, and Hawaii ban credit-based insurance scoring in auto rating outright (California and Massachusetts also bar it for homeowners). Maryland, Michigan, Oregon, and Utah restrict how it can be used without a full ban. And Iowa, New York, Oklahoma, and Pennsylvania each have a 2026 bill pending that would add a ban or restriction — none has passed. Everywhere else, insurers can generally use it as a rating factor.
States that ban it
No credit-based insurance score allowed in the scope noted, by state law.
Insurers cannot use credit-based scores or credit history to underwrite or rate auto policies, or to set homeowners rates, per California's Proposition 103 framework.
Massachusetts law bars auto insurers from using credit information or a credit-based score to set rates, underwrite, or renew a policy — and extends that bar to homeowners rates too.
Hawaii bars auto insurers from using credit ratings in underwriting standards and rating plans. The ban doesn't extend to homeowners policies.
States that restrict it
Credit can still factor into your rate, but the law limits how — typically barring insurers from using it to deny, cancel, or non-renew a policy, or to raise an existing rate.
Homeowners insurers can't refuse coverage, cancel, refuse to renew, or set rates based on credit history. Auto insurers can use credit for an initial policy's rate, but can't use it to deny the application, cancel, refuse renewal, or raise the premium at renewal.
Insurers can't use credit or a credit-based score to deny, cancel, or refuse to renew an auto or homeowners policy, and can't use it to set auto rates — though it may still factor into installment-payment-plan decisions.
Insurers can't cancel or refuse to renew a policy because of your credit, but they can still weigh credit when deciding whether to offer you a policy in the first place.
Credit can factor into initial auto underwriting but can't be the sole reason for a decision. After 60 days, insurers can't use it for cancellation or non-renewal, and credit can only work in your favor as a discount — never to raise your premium.
States with a 2026 bill pending
Nothing has changed yet in these four states — insurers can still use credit-based scores today. Each bill is still working through committee.
Introduced and referred to the House Commerce Committee Feb. 3, 2026 — still in committee as of July 17, 2026. Would bar credit information from motor-vehicle liability (auto) rating specifically.
Iowa Legislature — HF 2259 bill historyIntroduced March 6, 2026, amended and recommitted to the Assembly Insurance Committee March 19, 2026 — still in committee as of July 17, 2026. The broadest of the four: would also bar rating on income, education, employment, and most ZIP-code-level geography.
New York State Senate — A.10524Filed Jan. 12, 2026 by Senate Minority Leader Julia Kirt as part of a three-bill affordability package; the furthest along of the four, having cleared its first Senate committee in early February 2026. No floor vote yet.
Oklahoma Senate — Sen. Kirt press releaseReferred to the House Insurance Committee Feb. 20, 2025 — still there as of July 17, 2026, with no committee vote recorded. A repeat of a prior session's HB 2211.
Pennsylvania General Assembly — HB 657Everywhere else
For the roughly 40 remaining states, no state-level ban or documented restriction shows up in these sources — insurers can generally use a credit-based score as one rating factor among several. Per the NAIC's credit-based insurance score overview (updated March 19, 2026), a common baseline still applies in most states: insurers generally can't use a credit-based score as the sole reason to raise your rate, or to deny, cancel, or refuse to renew your policy. Your state insurance regulator is the authority on the specifics where you live, not this page.
Next step
Whatever your state allows, compare coverage the same way.
We don't sell coverage or quote you a price. We lay out the coverage types and the tradeoffs against a published standard, so a rating factor you can't control isn't the only thing deciding what you pay.
Compare coverageFrequently asked
Which states currently ban credit-based insurance scoring?
California, Massachusetts, and Hawaii bar insurers from using credit-based scores in auto rating. California and Massachusetts extend that bar to homeowners insurance; Hawaii's ban is auto-only.
Which states restrict it without a full ban?
Maryland, Michigan, Oregon, and Utah each limit how credit can be used — typically barring insurers from using it to deny, cancel, or non-renew a policy, or from raising an existing rate on credit alone — without eliminating credit as a factor entirely.
Are any other states about to ban it?
Iowa, New York, Oklahoma, and Pennsylvania each have a 2026-session bill proposing a ban or restriction, but none has reached a floor vote as of this writing — see the status and primary source for each above.
What about the other 40-plus states?
No state-level ban or documented restriction shows up in these sources, so insurers there can generally use credit-based scores as a rating factor. The NAIC notes a common baseline, though: in most states, insurers can't use a credit-based score as the sole reason to raise a rate or to deny, cancel, or refuse to renew a policy. Your state's insurance regulator is the authority on the specifics.
How is a credit-based insurance score different from my regular credit score?
It's a separate score built from similar credit-report data — payment history, debt levels, length of credit history — but used specifically to estimate insurance-claim risk rather than loan-default risk. Where it's used, it's one rating factor among several, not the whole picture.
Educational only — not insurance advice. ClearValue Insure is an independent education and comparison publisher, not a licensed insurance agent, broker, producer, or carrier. We do not sell, bind, or issue policies, and nothing here is personalized insurance advice. Legislative status changes as bills move through committee — for the current status of any bill, check the primary source linked above or your state's department of insurance.