Pricing

Which states ban or restrict credit-based insurance scoring?

California, Massachusetts, and Hawaii ban insurers from using a credit-based score to price auto insurance (California and Massachusetts also bar it for homeowners). Maryland, Michigan, Oregon, Utah, and Virginia restrict — but don't fully ban — its use. Iowa, Missouri, New York, Oklahoma, and Pennsylvania each have a 2026 bill pending. In the remaining roughly 37 states, insurers can generally use it as a rating factor, subject to a common NAIC baseline rule.

The full picture

Most U.S. insurers use a credit-based insurance score — a separate score built from credit-report data but scaled to estimate claim risk rather than default risk — as one factor in pricing auto and homeowners policies. Whether that's legal, and how far it can be used, is set state by state, not federally. As of this writing, three states ban it outright, five more restrict it without a full ban, and five have a 2026 bill in committee that could add restrictions. Everywhere else, current law allows it, subject to a baseline consumer protection most states share.

States that ban it

**California — auto + homeowners, full ban.** Insurers cannot use credit-based scores or credit history to underwrite or rate auto policies, or to set homeowners rates, under California's Proposition 103 framework.
**Massachusetts — auto + homeowners, full ban.** State law bars auto insurers from using credit information or a credit-based score to set rates, underwrite, or renew a policy, and extends that bar to homeowners rates.
**Hawaii — auto only, full ban.** Insurers can't use credit ratings in auto underwriting standards or rating plans; the ban doesn't extend to homeowners policies.

States that restrict it without a full ban

**Maryland — auto + homeowners, partial.** Homeowners insurers can't refuse coverage, cancel, refuse to renew, or set rates based on credit history. Auto insurers can use credit for an initial policy's rate, but not to deny the application, cancel, refuse renewal, or raise the premium at renewal.
**Michigan — auto + homeowners, partial.** Insurers can't use credit or a credit-based score to deny, cancel, or refuse to renew an auto or homeowners policy, or to set auto rates — though it may still factor into installment-payment-plan decisions.
**Oregon — auto only, cancellation/renewal restriction.** Insurers can't cancel or refuse to renew a policy because of your credit, but can still weigh credit when deciding whether to offer a policy in the first place.
**Utah — auto only, partial.** Credit can factor into initial underwriting but can't be the sole reason for a decision. After 60 days, insurers can't use it for cancellation or non-renewal, and it can only work in your favor as a discount — never to raise your premium.
**Virginia — auto only, partial, newest.** Insurers can't refuse to insure you, refuse to renew, limit coverage, or charge a different rate solely because of your credit information or credit-based score. Enacted as SB 693 (Chapter 902), signed April 13, 2026, effective July 1, 2026.

States with a 2026 bill pending

**Iowa — House File 2259.** Introduced and referred to the House Commerce Committee February 3, 2026; still in committee. Would bar credit information from motor-vehicle liability (auto) rating specifically.
**Missouri — Senate Bill 852.** Introduced by Sen. Karla May and referred to the Senate Insurance and Banking Committee; still there. Would bar insurers from using a credit report or insurance credit score to rate auto policies issued on or after August 28, 2026.
**New York — Assembly Bill A.10524-A.** Introduced March 6, 2026, amended and recommitted to the Assembly Insurance Committee March 19, 2026. The broadest of the five — would also bar rating on income, education, employment, and most ZIP-code-level geography.
**Oklahoma — Senate Bill 1435.** Filed January 12, 2026 by Senate Minority Leader Julia Kirt as part of a three-bill affordability package; cleared its first Senate committee in early February 2026, no floor vote yet.
**Pennsylvania — House Bill 657.** Referred to the House Insurance Committee February 20, 2025; still there with no committee vote recorded, a repeat of a prior session's HB 2211.

Nothing has changed in these five states yet — insurers there can still use credit-based scores today while each bill works through committee.

Everywhere else

For the roughly 37 remaining states, no state-level ban or documented restriction applies — insurers can generally use a credit-based score as one rating factor among several. The NAIC's baseline still applies in most states: insurers generally can't use a credit-based score as the sole reason to raise your rate, or to deny, cancel, or refuse to renew your policy. Your state's insurance regulator is the authority on the specifics where you live.

Sources for the statuses above

California, Massachusetts, and Hawaii ban insurers from using credit-based scores in auto rating; California and Massachusetts extend that ban to homeowners insurance. — Experian — Which States Prohibit or Restrict the Use of Credit-Based Insurance Scores? (published 2025-03-18), cross-checked against Newsweek's 2026-04-28 state-by-state summary
Maryland, Michigan, Oregon, Utah, and Virginia each restrict (without fully banning) the use of credit-based insurance scores. — Experian — Which States Prohibit or Restrict the Use of Credit-Based Insurance Scores? (published 2025-03-18)
Virginia's SB 693 (Chapter 902) restricting credit-based insurance scoring in auto rating was signed April 13, 2026 and takes effect July 1, 2026. — Virginia LegiScan — SB693 bill history
Iowa HF 2259, Missouri SB 852, New York A.10524-A, Oklahoma SB 1435, and Pennsylvania HB 657 are each pending 2026-session bills addressing credit-based insurance scoring, none of which has reached a floor vote. — Iowa Legislature, Missouri Senate, New York State Senate, Oklahoma Senate, and Pennsylvania General Assembly bill-tracking pages (re-verified live 2026-07-17)
In most states without a specific ban or restriction, insurers generally can't use a credit-based insurance score as the sole reason to raise a rate, or to deny, cancel, or refuse to renew a policy. — NAIC — Credit-Based Insurance Scores topic page (last updated 2026-03-19)

What ClearValue covers — and where to go for the rest

ClearValue Lending publishes this regulatory research; it doesn't sell, bind, or issue insurance policies. Once you know whether your state allows credit-based scoring, the coverage decision itself — which carrier, which limits, which deductible — is a separate comparison. For side-by-side auto and home coverage comparisons against a published standard, see [ClearValue Insure's coverage comparison](https://clearvalueinsure.com/compare?utm_source=clearvaluelending&utm_medium=contextual-link&utm_campaign=authority-network).

Educational research, not insurance advice

ClearValue Lending is a small business funding platform and financial-education publisher — not a licensed insurance agent, broker, producer, or carrier. This page does not sell, bind, or issue policies, and legislative status changes as bills move through committee. Confirm the current status of any bill with the primary source linked above, or with your state's department of insurance.

Key takeaways

California, Massachusetts, and Hawaii ban credit-based insurance scoring in auto rating; California and Massachusetts also bar it for homeowners.
Maryland, Michigan, Oregon, Utah, and Virginia restrict but don't fully ban its use — Virginia's restriction is the newest, effective July 1, 2026.
Iowa, Missouri, New York, Oklahoma, and Pennsylvania each have a 2026 bill pending; none has passed as of this writing.
In the remaining roughly 37 states, insurers can generally use a credit-based score as a rating factor, subject to a common NAIC baseline protection.
This is regulatory research, not personalized insurance advice — confirm current status with your state's insurance regulator.

Frequently asked questions

Which states currently ban credit-based insurance scoring?

California, Massachusetts, and Hawaii bar insurers from using credit-based scores in auto rating. California and Massachusetts extend that bar to homeowners insurance; Hawaii's ban is auto-only.

Which states restrict it without a full ban?

Maryland, Michigan, Oregon, Utah, and Virginia each limit how credit can be used — typically barring insurers from using it to deny, cancel, or non-renew a policy, or to raise an existing rate on credit alone — without eliminating credit as a factor entirely. Virginia's restriction is the newest, effective July 1, 2026.

Are any other states about to ban it?

Iowa, Missouri, New York, Oklahoma, and Pennsylvania each have a 2026-session bill proposing a ban or restriction, but none had reached a floor vote as of the last verification date. New York's bill is the broadest, also targeting income, education, employment, and most ZIP-code-level geography as rating factors.

What about the other 35-plus states?

No state-level ban or documented restriction applies, so insurers there can generally use credit-based scores as a rating factor. The NAIC notes a common baseline: in most states, insurers can't use a credit-based score as the sole reason to raise a rate, or to deny, cancel, or refuse to renew a policy. Your state's insurance regulator is the authority on the specifics.

How is a credit-based insurance score different from my regular credit score?

It's a separate score built from similar credit-report data — payment history, debt levels, length of credit history — but scaled to estimate insurance-claim risk rather than loan-default risk. Where it's used, it's one rating factor among several, not the whole picture.

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Published 2026-08-14 · Updated 2026-08-14 · https://clearvaluelending.com/answers/credit-based-insurance-score-laws-by-state