Glossary term
Extraordinary life circumstance exception
Extraordinary life circumstance exception: A required exception to credit-based rating in many states when credit damage resulted from events such as serious illness, job loss, divorce, death of a family member, identity theft or disaster.
Where this term matters
Guides and entries on this site that use the term.
Guide
States That Ban Credit in Auto Insurance
The states where insurers cannot use credit to rate auto insurance—California, Hawaii, Massachusetts—plus Michigan's credit-score ban and the states that restrict it.
Guide
Alternatives When Credit Is Raising Your Premium
Options for drivers whose credit is inflating their premium: life-circumstance exceptions, telematics and pay-per-mile, non-standard insurers, coverage changes and timing.