Glossary term
Rating tier
Rating tier: A pricing group with its own rates. Credit is a primary tier factor at many insurers; the number and spread of tiers vary widely.
Where this term matters
Guides and entries on this site that use the term.
Guide
How Much More Auto Insurance Costs With Bad Credit
Typical premium differences between credit tiers, how the effect compares with tickets and accidents, and how it varies by state and insurer.
Entry
Telematics Auto Insurance With Bad Credit: How Driving Tracking Can Lower Your Premium
Learn how telematics and usage-based car insurance substitute driving habits for credit scores, helping drivers with poor or thin credit secure lower premiums.
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.