Information about Insurance Scoring
Insurance scores determine a customer’s likelihood of experiencing future insurance claims, based on their financial behaviors. Insurance-score models are based on the actual claims history of consumers with similar financial behaviors. The better your score, the better your rates. It should be noted however, insurance scores are just one aspect of underwriting and determining rates.
Is my Insurance Score the same as my Credit Score?
No. Your insurance score is used to predict the probability of future claims, while your credit score is used to predict your future credit behavior. Insurance scoring enables your insurance company to better assess your risks and develop more accurate pricing to help save you money.
What factors affect my Insurance Score?
The factors that are evaluated and used to determine your unique insurance score are:
- Outstanding debt
- Length of credit history
- Late payments
- Collections
- Foreclosures
- Bankruptcy
- New requests for credit and length of time since most recent credit inquiry
- Number of open accounts
The factors that are NOT used to determine your unique insurance score are:
- Gender
- Age
- Income
- Marital status
- Address
- Ethnicity
- Nationality
- Religion
What if I am turned down because of my insurance score?
If you are turned down because of your insurance score, do not worry. There are several things you can do. These procedures fall under the Fair Credit Reporting Act (FCRA):
- First, your insurance company must notify you that you have been declined.
- You will be given the opportunity to request a free copy of your credit report from the credit-reporting bureau.
- A copy of your credit report may be obtained by contacting ChoicePoint Consumer Service Center - P.O. Box 105108, Atlanta, GA 30348-5108, Phone: 1.800.456.6004
- Take steps to improve your credit score
How do I improve my insurance score?
There are several ways to improve your insurance score:
- Pay your bills on time.
- Re-establish good credit.
- Keep a watchful eye on your available credit.
- Keep in mind that recent history is more important than past years.
Is my income factored into my insurance score?
No. Insurance scores do not measure your income.
Can you tell me the details of how my score was determined?
No. Due to privacy issues, insurance companies are only given the score itself. Neither the company, nor the agency, knows the specifics of your credit history. We can only give you the letter or number score. For more information, you may contact ChoicePoint Consumer Service Center to receive a copy of your credit report.
