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Credit Scoring: A Consumer's Perspective

Is credit scoring really the best tool to establish the insurance-worthiness of potential customers?

By David D. Thamann | Updated on November 28, 2011

It is no secret that insurance companies use the credit scores of individuals as one tool in the approval/disapproval process and in establishing premiums.

Most courts allow this process as long as the scoring is uniformly applied to all insureds and is consistent with the purposes of the individual state’s insurance code. But just because credit scoring is legal does not make it right.

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