Insurance Companies

Some potential employers may have a reasonable need to check out your credit history, but insurance companies? Where is their need?

As it turns out, your credit rating and your driving record probably are completely unrelated. But auto insurers have found that your likelihood to pay your credit card bills is closely related to your likelihood to pay your insurance premiums.

The same holds true for other types of insurance, too, including life insurance.

However, many states are looking unfavorably on insurers’ use of credit histories in underwriting. Washington, Utah, Idaho and Maryland have already passed laws restricting insurance companies’ ability to do so, and many more states soon may follow suit.

Next: Lender Inquiries