CHARLOTTE, N.C. — Recently, WCNC Charlotte verified that red cars don't cost more to insure. Since then, VERIFY has received a lot of comments from users saying your credit score can affect the cost of car insurance.
Credit scores play a role in many purchases, but do they really determine how much you pay for car insurance?
Yes, your credit score does factor into how much you pay for your car insurance.
WHAT WE FOUND
Under North Carolina law, insurance companies licensed to sell home and car insurance may use credit card scores in determining your insurance premiums. The North Carolina Department of Insurance states insurance companies believe credit history can be used to predict insurance claims-filing activity.
State law allows insurance companies to use your credit information when determining your policy. However, insurance companies are not allowed to use your credit score as the sole reason for terminating an insurance policy or changing the rate of your policy.
There are other factors that go into determining your insurance rates, like your driving record, age, gender, and more.
VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit VERIFY.