Non-driving auto insurance rating factors
The following are some of the most common non-driving factors used by insurers to price auto insurance. Whether and how these factors apply to pricing varies by company.
- Gender: Is the driver male or female? Men and women pay different rates in most states. Several states allow drivers to identify as gender X or non-binary.
- Age: How old is the driver? Young drivers, especially teen drivers, are considered higher-risk than adult drivers.
- Driving experience: How long has the driver been licensed? New drivers are considered higher-risk than experienced drivers.
- Credit history: Has the driver been financially responsible? Drivers with low credit ratings are considered higher-risk than those with good credit.
- Education: Has the driver completed high school or college? Drivers with higher levels of academic achievement are considered lower risk.
- Occupation: What does the driver do for work? Drivers with certain professions (teachers, engineers, doctors, etc.) are considered lower risk than others.
- Employment status: Does the driver have a job? Drivers who work full time are considered lower risk than those who are unemployed.
- Marital status: Is the driver married? Married drivers are considered lower-risk than those who are single or divorced.
- Residential status: Does the driver rent or own their home? Drivers who are homeowners are considered lower risk than those who rent.
- Insurance history: Has the driver maintained continuous car insurance coverage? Drivers who stay covered are considered lower risk than those who allow coverage to lapse — even for a day.
Most states consider many of these rating factors when determining policy terms. However, some factors have been excluded—or even outlawed—in certain states. The table below shows which factors are not used in car insurance rating by state.
***Editor’s note:*A factor is considered “permitted” when there are no laws or regulatory policies in the state that ban or effectively ban insurers from using the factor. State regulators generally require actuarial proof of future losses for all rating factors and prohibit rates that are excessive, inadequate or unfairly discriminatory.
Why do states have different car insurance laws?
A few states — California, Hawaii, Maryland, Michigan and Massachusetts — are noticeably more restrictive than other states. That’s because lawmakers in those states decided it was unfair for insurers to charge some drivers more due to certain personal characteristics or possible economic disadvantages.
Those in favor of more restrictive regulation argue that drivers’ car insurance costs should primarily reflect their driving. They say it’s unfair for insurers to charge higher rates to people who don’t have a college degree or who can’t afford to own a home.
Other states take a different approach to insurance regulation, giving insurers more leeway to identify and use the factors they find useful in predicting losses. The factors each company considers and how they’re weighted varies, but insurers generally argue that the more flexibility they have to set rates, the more accurate prices are for consumers. They say limiting rating factors can result in lower-risk drivers subsidizing higher-risk drivers.
Do these different regulatory styles affect rates? Yes, but the impact hits consumers differently depending on their situation. For example, drivers who have a perfect driving record but poor credit may benefit from being in a state like California, where bad credit doesn’t impact rates. Drivers with good credit, however, may benefit by being in a state where their good money habits net them an insurance discount.
Credit in car insurance has been somewhat controversial in state legislatures over the past few years.[4] We suggest checking with your state insurance department to be sure you're up-to-date on any changes that may have occurred recently.[5]
Car insurance pricing laws by state
Here are some of the car insurance pricing laws for some of the states with the most drivers. Look below to see all 50 states and their individual laws.
California Allowed (with applicable limitations): driving experience, marital status, address/zip code Prohibited (or effectively prohibited): gender, age, credit history, education, occupation, employment status, residential status, insurance history Notes & Clarifications: California’s insurance commissioner banned gender as of January 2019. Occupation and education are permitted for use in group plans (i.e. for alumni associations and other membership programs).
Colorado Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: The permissibility of the above factors depends on a detailed review by the state’s department of insurance. The company must provide actuarial justification, and factors cannot be applied in a manner that results in a rate that is excessive or inadequate. Use of credit history must comply with the provisions outlined in Colorado Revised Statute 10-4-116. Rates may not be based solely on insurance history, gender, marital status, or age.[6]
Florida Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Michigan Allowed (with applicable limitations): gender (group-rated policies), age, years of driving experience, credit history, education, occupation, employment status, marital status (group-rated policies), residential status, address/zip code, insurance history Prohibited (or effectively prohibited): gender (non-group policies), marital status (non-group policies) Notes & Clarifications: Gender and marital status are permitted only in rate-making for group plans (i.e. for alumni associations and other membership programs). **UPDATE:**Michigan lawmakers approved a major insurance reform bill in May 2019 that will ban insurers in the state from using gender, marital status, address/ZIP code, residential status, education and occupation in rate setting. The ban will be enforced starting in July 2020. Insurers will be permitted to use “territory” as approved by the state regulators instead of zip code.[7]
New York Allowed (with applicable limitations): gender, age, years of driving experience, credit history, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): occupation, education, employment status Notes & Clarifications: none
Texas Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
The Zebra contacted insurance regulators in each state and Washington D.C. to verify the above information. Updates are made as new laws and policies go into effect and are accurate to the best of our ability. (For clarifications, please contact us at .)
Alabama
Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Banned (or effectively banned): none Notes & Clarifications: none Alaska **Allowed (with applicable limitations):**gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history **Banned (or effectively banned):**not-at-fault accidents Notes & Clarifications: Rating prohibitions include the existence or driving record of a resident or relative properly excluded under AS 28.20.440(l); variables that cannot be reevaluated and/or which are fixed at new business inception. See Alaska’s Rates Checklist for additional details.[8]
Arizona Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Arkansas Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
California Allowed (with applicable limitations): driving experience, marital status, address/zip code Prohibited (or effectively prohibited): gender, age, credit history, education, occupation, employment status, residential status, insurance history Notes & Clarifications: California’s insurance commissioner banned gender as of January 2019. Occupation and education are permitted for use in group plans (i.e. for alumni associations and other membership programs).
Colorado Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: The permissibility of the above factors depends on a detailed review by the state’s department of insurance. The company must provide actuarial justification, and factors cannot be applied in a manner that results in an excessive or inadequate rate. Use of credit history must comply with the provisions outlined in Colorado Revised Statute 10-4-116. Rates may not be based solely on insurance history, gender, marital status, or age.[6]
Connecticut Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Delaware Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Florida Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Georgia Allowed (with applicable limitations): gender, age, years of driving experience, credit history, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): occupation, education, and employment status Notes & Clarifications: none Hawaii Allowed (with applicable limitations): address/zip code, insurance history Prohibited (or effectively prohibited): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status Notes & Clarifications: none Idaho Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Illinois Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Indiana Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Iowa Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Kansas Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Kentucky Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Louisiana Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Maine Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: Insurers must provide supporting data and methodology showing rates are actuarially justified and not unfairly discriminatory. Insurers may not refuse a policy solely because a driver has reached age 65. Age and length of driving experience must comply with limitations prohibiting policy cancelations, reductions, refusals, or premium increases for drivers of advancing age. Maryland Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: Specific state restrictions apply for credit history, marital status, and age. Massachusetts Allowed (with applicable limitations): years of driving experience, address/zip code, insurance history Prohibited (or effectively prohibited): gender, age, credit history, education, occupation, employment status, marital status, residential status Notes & Clarifications: none Michigan Allowed (with applicable limitations): gender (group-rated policies), age, years of driving experience, credit history, education, occupation, employment status, marital status (group-rated policies), residential status, address/zip code, insurance history Prohibited (or effectively prohibited): gender (non-group policies), marital status (non-group policies) Notes & Clarifications: Gender and marital status are permitted only in rate-making for group plans (i.e. for alumni associations and other membership programs). **UPDATE:**Michigan lawmakers approved a major insurance reform bill in May 2019 that will ban insurers in the state from using gender, marital status, address/ZIP code, residential status, education and occupation in rate setting. The ban will be enforced starting in July 2020. Insurers will be permitted to use “territory” as approved by the state regulators instead of zip code.[7]
Minnesota Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, marital status, address/zip code, insurance history* Prohibited (or effectively prohibited): residential status, employment status Notes & Clarifications: Insurance history may only be used if coverage was required by law. Mississippi Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: Rating by address/zip code is allowed; however, rating practices can’t be unfairly discriminatory and must fully comply with Mississippi’s Competitive Rating Law criteria.
Missouri Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: Insurers must provide support to demonstrate that any variables, on their own or in concert with other variables, do not lead to rates that are excessive, inadequate or unfairly discriminatory.
Montana Allowed (with applicable limitations): age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): gender Notes & Clarifications: none
Nebraska Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Nevada Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none New Hampshire Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none New Jersey Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none New Mexico Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none New York Allowed (with applicable limitations): gender, age, years of driving experience, credit history, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): occupation, education, employment status Notes & Clarifications: none North Carolina Allowed (with applicable limitations): years of driving experience, credit history, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): gender, age*, level of education* Notes & Clarifications: Age is permitted only when providing a discount to drivers age 55 and older. Credit may not be the sole criterion for terminating an existing policy, but it can be the sole criterion for discounted rates. Education is prohibited as a general regulatory policy. Specific state limitations apply for occupation and employment status.
North Dakota Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Ohio Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Oklahoma Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Oregon Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: An option for non-binary drivers is required for gender.
Pennsylvania Allowed (with applicable limitations): age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): gender Notes & Clarifications: Credit may be used for new business and to discount rates at renewal, but not to increase rates at renewal. For marital status, widowed drivers maintain a lower “married” rate after the death of a spouse rather than moving to the higher “single” rate. Rates for other factors may not be excessive, inadequate, or unfairly discriminatory.
Rhode Island Allowed (with applicable limitations): gender, age*, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: Age is permitted up to age 65. Drivers with no credit history must be treated as “neutral.”
South Carolina Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none South Dakota Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Tennessee Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Texas Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Utah Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none **Notes & Clarifications:**none
Vermont Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Virginia Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: Insurers using any criterion for pricing purposes (discounts, surcharges, tier level, etc.) must apply the criteria to all risks, not just to the same class of risks.
Washington Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none Washington D.C. Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
West Virginia Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Wisconsin Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
Wyoming Allowed (with applicable limitations): gender, age, years of driving experience, credit history, education, occupation, employment status, marital status, residential status, address/zip code, insurance history Prohibited (or effectively prohibited): none Notes & Clarifications: none
The Zebra contacted insurance regulators in each state and Washington D.C. to verify the above information. Updates are made as new laws and policies go into effect and are accurate to the best of our ability. (For clarifications, please contact us at .)