Glossary term
Adverse action notice
Adverse action notice: A required notice when credit information leads to a higher rate, lower tier or denial. Names the bureau, lists reasons and grants a free report.
Where this term matters
Guides and entries on this site that use the term.
Guide
How Credit Affects Auto Insurance Rates
What a credit-based insurance score is, how it differs from a credit score, how much it moves premiums, and why insurers are allowed to use it.
Entry
What an Insurance Adverse Action Notice Means
If credit raised your auto insurance rate, you receive an adverse action notice. What it says, what rights it gives you and what to do with it.
Entry
Can an Auto Insurer Cancel Your Policy if Your Credit Score Drops?
Learn whether an auto insurer can cancel or non-renew your policy over a drop in credit, what state laws require, and your rights under adverse action rules.