The Role of Credit Scores in Auto Insurance in South Carolina

In South Carolina, insurance companies may use credit-based insurance scores to help determine auto insurance rates. These scores are not identical to traditional credit scores used by lenders, but they share several contributing factors.

The concept behind using credit information in auto insurance is based on risk assessment. Insurers look at financial behaviors and patterns to help estimate the likelihood of future claims.

Credit-Based Insurance Scores

A credit-based insurance score is typically composed of elements found in a consumer’s credit report. These include:

• Payment history, which reflects how consistently bills are paid on time.

• Outstanding debt, or the total amount owed across credit accounts.

• Length of credit history, showing how long accounts have been maintained.

• Credit mix, or the diversity of credit accounts, such as credit cards and auto loans.

• New credit activity, including newly opened accounts.

Each insurer may weigh these factors differently. In South Carolina, this information is just one component of a larger evaluation process that also includes driving record, vehicle type, location and usage.

Impact on Rates

A strong credit profile may contribute to more favorable rate offers, while a lower score could result in higher premiums.

Consumers have rights and may request reviews if they believe their credit information has been used improperly.

Contact Us

Contact an agent at GVL Insurance Company today to explore how credit influences auto insurance in South Carolina.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.