Loop does not use Credit Score in our underwriting and pricing of customers. Unlike most insurance carriers and Managing General Agencies (MGAs) who rely heavily on demographic information like Education, Occupation, and Credit Score -- Loop has developed novel technology that allows us to bypass those measures in favor of newer, more dynamic measures of risk that create more inclusive pricing for our customers.
How Much Does Credit Affect My Insurance Payment?
Studies show that credit score can raise your insurance premiums by 50-70% in some cases, depending on the insurance carrier and the state.
Taking A Stand For Equitable Pricing
Loop is committed to take a stand against using Credit Score in our pricing and underwriting. We commit to never use Credit Score to price or underwrite our community. Many studies show the adoption of Credit Score has resulted in disproportionate discrimination for young people and communities of color. With the technology that is available today, we believer there are significantly more accurate and appropriate measures of risk that can be used instead.