Extraordinary Life Circumstances Exception

What Does Extraordinary Life Circumstances Exception Mean?

An extraordinary life circumstances exception occurs when an insurance company considers an unusual event that may have negatively impacted a person’s credit score.

Insuranceopedia Explains Extraordinary Life Circumstances Exception

If an insurance applicant or policyholder qualifies for an extraordinary life circumstances exception, their credit score may not be considered when making an insurance decision. Credit history is a normal pricing factor in most states, and how heavily it counts is explained in this look at whether credit scores affect car insurance rates.

For example, if a sudden medical emergency negatively impacts their credit score, they may be granted an exception. In such cases, if they were applying for auto insurance, the insurer could overlook their credit score when determining their coverage. Drivers who qualify for an exception still benefit from comparing quotes across the best car insurance companies before settling on a policy.