Every year the state of Arkansas surveys insurers to determine the impact of the use of credit scores in the rates that consumers pay. Here are results from last year’s policies.
During 2016 for all personal lines coverages:
- 3,443,044 policies were written or renewed that involved the use of credit as one of the factors contributing to the final premium.
- 1,877,353 policies (54.5%) resulted in the premium being decreased.
- 681,038 policies (19.8%) resulted in the premium being increased.
- In the remaining 884,653 polices (25.7%), credit was a neutral factor and did not contribute to or change the final premium.
- For those policies in which credit played some role in determining the final premium, those receiving a decrease outnumbered those who received an increase by 2.76 to 1.
- 80% of consumers either received a discount for credit or it had no effect on their premium.
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