New Missouri bill looks to prohibit credit scores from determining car insurance costs

ST. JOSEPH, Mo. (News-Press NOW) — Millions of Missourians could see changes in their monthly car insurance payments pending the outcome of new legislation introduced this session.

Senate Bill No. 852 filed in December by Missouri Sen. Karla May (D-St. Louis) seeks to forbid automobile insurance companies from utilizing credit scores to determine automobile insurance rates in the state of Missouri.

The measures specifically states that no automobile insurer will utilize information obtained directly or indirectly from a consumer reporting agency or any insurance credit score that relies on information for the purpose of determining automobile insurance contract rates.

The measure would apply to future automobile insurance contracts beginning Aug. 28, 2026.

Credit scores are a key factor utilized by automobile insurers to assess risk and determine rates, with poor credit scores potentially leading to much higher premiums, sometimes double.

Studies conducted by Zebra, a leading online insurance comparison marketplace, indicate drivers with very poor credit scores (under 523) pay an average of $6,254 a year for their car insurance as opposed to drivers with exceptional credit scores (823 and above), who pay just $1,673 per year — even if both drivers have similar driving records.

The Senate bill has already had a first and second reading in the 2026 legislative session that began Jan. 7, with the measure now being referred to the Senate Insurance and Banking Committee for further review.

Four states, including California, Hawaii, Massachusetts and Michigan, have all banned insurance companies from using credit scores to price or deny insurance policies. Maryland, Oregon, and Utah have all restricted the use of credit scores as a factor in denying or canceling policies.

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