By Derek Nguyen · Editor
Published · Updated
Answer in brief
An insurance score responds to the same actions as a credit score, with payment history and utilisation weighing most. The fastest movers are paying revolving balances below 30% of limits (ideally under 10%) and bringing any late accounts current; disputing errors on your report can produce a step change. Improvements typically appear at your next renewal when the insurer re-pulls the score—but most states require insurers to re-rate on request if your credit has improved, so ask rather than wait.
Actions ranked by speed and impact
| Action | Time to show | Impact |
|---|---|---|
| Pay revolving balances below 30% (then 10%) of limits | 1–2 statement cycles | High |
| Bring any late accounts current | 1–2 cycles | High |
| Dispute and remove report errors | 30–45 days | High if errors exist |
| Stop applying for new credit | Immediate (no new inquiries) | Moderate |
| Keep old accounts open | Ongoing | Moderate |
| Pay collections / negotiate deletion | 1–3 months | Moderate to high |
| Become an authorised user on a well-managed account | 1–2 cycles | Moderate |
Get the insurer to look again
Most states require insurers, on request, to re-pull your score and re-rate if it has improved—often once per policy period. Call after your score has moved and ask for a re-rate. If your insurer will not, the next renewal is when it happens automatically, and it is also a natural time to compare.
Extraordinary life circumstances
Many states require insurers to make an exception to credit-based rating for events such as serious illness, job loss, divorce, death of a spouse or identity theft. You must ask and usually document it. The alternatives guide explains.
Questions & answers
How fast can I raise my insurance score?
Utilisation and payment changes show within one or two statement cycles; the insurer sees them when it next pulls the score.
Will my insurer re-rate me if my credit improves?
Most states require it on request, usually once per policy period. Ask.
Do medical bills affect my insurance score?
Medical collections have been removed from most scoring models or weigh less than before; many states also require exceptions for medical debt.
Terms used in this guide
- Credit utilisation
- Revolving balances as a share of credit limits. One of the fastest-moving inputs to both credit and insurance scores; under 30% helps, under 10% helps more.
- Credit-based insurance score
- A score derived from your credit report and weighted to predict insurance losses. Used as a rating factor in most states; banned in California, Hawaii and Massachusetts, with Michigan barring use of the credit score itself.
- Re-rate
- An insurer's recalculation of your premium using updated information—such as an improved credit score—usually available on request once per policy period.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- MCL 500.2111 — permitted and prohibited rating factors — Michigan Legislature, MCL 500.2111(4)Primary lawInsurers may not set auto rates on sex, marital status, home ownership, educational level, occupation, postal zone or credit score (as defined in § 2162).
- Credit-based insurance scores (insurance topic) — National Association of Insurance CommissionersState insurance regulatorIn most states insurers may not use a credit score as the sole reason to raise rates or decline, cancel or non-renew; many states require adverse-action notices.
- State chart: use of credit reports/scoring in underwriting — National Association of Insurance Commissioners (2025)State insurance regulatorState-by-state statutory summary; e.g. Massachusetts (auto rates may not be based on credit), Michigan (credit score prohibited, MCL 500.2162), Maryland (credit may rate a new auto policy only).
- Background on: Insurance scoring — Insurance Information InstituteIndependent researchWhat credit-based insurance scores are; Arkansas regulator data showing credit lowered premium on ~57% of auto policies and raised it on ~23%.
- Speed — Insurance Institute for Highway SafetyIndependent researchHow speed raises crash likelihood and severity; speed-limit and enforcement research.
- Insurance research and advocacy — Consumer Federation of AmericaConsumer guidanceConsumer-side research on auto insurance pricing, non-driving rating factors and affordability.
- Consumer insurance information — National Association of Insurance CommissionersConsumer guidancePlain-language guides from the body of state insurance regulators; links to every state's insurance department and complaint process.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
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.
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
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.