What is an Insurance Score?

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What is an Insurance Score?


What Your Insurance Score Means

Since more than 90% of insurers use some form of insurance scoring, it can have a big impact on the amount of premium that you pay for your coverage no matter what company your insurance is through. In this regard, a higher insurance credit score will result in you paying a lower amount of premium, and conversely, a lower insurance score will likely result in you being charged a higher amount for coverage.

How is Your Insurance Score Determined?


  • Payment History (40%) — How well you have made payments, bankruptcies, and collections
  • Outstanding Debt (30%) — How much debt you currently have

What is the Insurance Score Range?


  • Insurance scores that fall into the range of 770 or higher are typically considered to be very good.

How to improve your score?

Improving your credit-based insurance score is just like improving your regular credit score. Make payments on time. Pay bills, taxes and fines/fees as agreed. If you are behind on payments, catch up and stay current. Keep balances on credit cards as low as possible & close unused department store credit. Most importantly, request your free report from your Insurance carrier or you can go to www.annualcreditreport.com to obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian and TransUnion). If you find errors on your credit report, contact the credit reporting company to have them corrected – errors could affect your credit-based insurance score.