(Work in insurance product/pricing)
There is a pretty clear relationship between credit & likelihood of filing a claim, and it varies enough across the credit range that it’s not just a “if below xx then no, otherwise yes” - 550 vs 600 vs 650 vs 700 all show different claims frequency. It’s actually one of the most predictive variables.
It’s also a controversial rating factor as you’d expect - not allowed to use it in California or Massachusetts, Washington tried banning it last year too, and other states regularly revisit their position. Feds regularly probe into this too.
On that point - insurance is unlike most other products in that it is regulated state by state. Legal environment also varies a lot state by state and there are other quirks like some states have no fault and others do not. Because of that, prices vary significantly across states. NYC metro area is expensive. Florida, Louisiana, Nevada also really expensive - in particular in SE FL, New Orleans, Vegas.