Does My Credit Score Affect My Insurance Rates?
April 29, 2026
Yes, for those residing in the Sunshine State, insurance companies use credit-based insurance scores to help predict risk, which is allowed by state law in Florida. Fact is, lower credit scores are statistically correlated with a higher likelihood of that person filing claims. So, if your credit score needs improvement, most insurance carriers will charge higher premiums to cover the perceived risk based on your predicted higher loss ratio.
Generally speaking, poor credit scores primarily impact the cost of auto insurance and homeowners insurance, which sometimes is over a 100% increase in home insurance for those with bad credit scores. Similar to purchasing a homeowner’s policy, credit-based scores are also used to determine premiums for personal property coverages, such as renters insurance and condo insurance premiums in Florida. For example, auto rates can be as much as 69% higher for drivers with poorer credit scores compared to those with good credit.
Some Florida-based insurance companies do, however, offer competitive rates for higher risk candidates with bad credit. So, finding the best rates for purchasing the insurance coverage you need is possible by comparing quotes from insurers that rely less on credit scores. This is a perfect example as to when an independent agent at Nsurance Nation can help with your online search to find a carrier that specializes in high-risk, non-standard auto insurance not based on credit scores.
Which insurers use FICO credit score for premiums?
None; a credit-based insurance score isn’t the same as your consumer credit score, as Florida insurance carriers use specific information to create their own credit-based insurance scores, rather than the standard FICO score. This does, however, include your payment history, outstanding debt, new credit applications, credit mix, and other related factors. The data collected is then used by the insurer to calculate the risk or likelihood of your filing a claim. Insurers in the Sunshine State are prohibited from using personal characteristics like race, gender, age*, income, address, marital status, and religion as factors for setting your credit-based insurance score. Although some states (California, Hawaii, Massachusetts) have banned using credit-based insurance scores with strict restrictions in other states like Maryland and Michigan), Florida isn’t one of them.
*NOTE: Currently, the 2025 Florida Statutes (626.9741) explicitly restrict using age to request or calculate a credit report or score. Nonetheless, while age is not used in establishing your credit-based insurance score itself, Florida insurance carriers may still use your age as a separate rating factor for determining total cost of auto insurance premiums. On the other hand, it is the age of your home (and its roof) that are used in determining homeowners insurance premiums. This is due to outdated construction methods or failure to meet modern building codes. In general, homes ten years old or newer may secure better rates and have more policy options available.
How to Improve Your Credit Score in 30 Days
Increasing your credit score in 30 days is possible, especially for those with high credit card utilization by becoming a seasoned user on cleaner accounts. This often starts with disputing inaccuracies and errors contained on any of your credit-based accounts, plus lowering your credit utilization and avoiding new credit applications during this time period. In some situations credit piggybacking can help, such as asking a family member with high credit limits to add you as a user.
Lowering your credit utilization is the fastest way to raise your score. If possible drastically reducing balance to below 10% of your total limits can help, as well as paying off debts before the statement closing date and not just the due date. In some cases, consumers can call their creditors and request a higher limit, which immediately lowers their utilization ratio provided they don’t increase spending. You can also make multiple payments within the same billing cycle to lower your balances.
Do not open new credit cards during the 30-day period as it creates a hard inquiry and lowers the average of your overall credit account age. Additionally, do not close your old accounts as this reduces your available credit limits and decreases your average account history. If you happen to be in the middle of an application for a property loan, ask your mortgage lender to initiate a "rapid rescore," as this can update your credit report within a few (3 to 5) business days, rather than the traditional thirty days.
____________________
While it is impossible to fix your credit score overnight, Nsurance Nation can still help you find the most affordable rates. For starters, our independent agents will work directly with you to look for carriers that offer special discounts or potentially those offering reduced rates if you bundle your car insurance with homeowners or renters insurance. Additionally, increasing your deductible may immediately lower premiums, however, it is imperative that you can afford to pay the higher deductible out of pocket should you need to file a claim. Let us help you decide whether your previous carrier, or one that you haven’t even considered, has the insurance policy options that works best based on your unique circumstances. Call 1-833-450-9490 to speak with an agent today.
