Glossary term
Rating factor
Rating factor: Any characteristic used to set a premium: record, age, territory, vehicle, mileage, coverage and—where allowed—credit.
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.
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.
Entry
Moving to a State That Bans Credit in Auto Insurance: How Your Rate Changes
Discover what happens to your car insurance premium when moving to a state like California, Michigan, or Massachusetts where credit scoring is prohibited by law.
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.
Entry
Michigan Auto Insurance Without Credit Checks: State Rules Explained
Understand Michigan's statutory ban on credit scoring under MCL 500.2111, how auto insurance rates are calculated, and how drivers can save on coverage.