• All Roads are Not Created Equal: Tips for Rural vs. Urban Driving
  • Pros and Cons of Buying a House Now
  • 7 Family Activities You Can Do While You're Working From Home During the Coronavirus Pandemic
  • 6 Home Organizing Projects to Keep Your Children Busy While You're Working From Home During COVID-19
  • 10 Tips for Staying Productive When Working From Home During the Coronavirus (COVID-19) Pandemic

What is an Auto Insurance Score?

Emily Guy Birken

An insurance score is a score calculated from information on your credit report. Your credit information can be very predictive of future accidents or insurance claims, which is why many insurance companies use this information to develop accurate rates.

Your credit score is one of the factors that can affect your car insurance premium. If you want to understand better what goes into the pricing of your car insurance and how you can lower it, you need to be aware of the relationship between your credit score and your insurance score.

Why Does Your Credit Score Matters to Your Insurance Score?

Insurers first started using credit scores to help determine premium rates in the mid-1990s. They realized that there was a significant relationship between a customer’s credit score and how likely they were to file a claim. Those with lower credit scores were more likely to file a claim and those with higher credit scores were less likely to file a claim. At least two studies have supported this observation: a 2003 study by the Bureau of Business Research and a 2007 study by the Federal Trade Commission.

Although this connection exists and is well-known among insurance underwriters, the reason for it isn’t clear. Some speculate that drivers who pay their bills on time are more likely to be responsible in general, and thus, less likely to be involved in an accident. Note that the use of credit scores to determine auto insurance rates is prohibited in California, Hawaii, and Massachusetts (Maryland and Hawaii for homeowners insurance).

What Is the Difference Between a Credit Score and an Auto Insurance Score?

When calculating your car insurance rate, insurers use your credit score to derive something called an insurance score or a credit-based insurance score. Read More

Recent Articles & News
  • All Roads are Not Created Equal: Tips for Rural vs. Urban Driving
    anemptytextlline
    anemptytextlline
  • Pros and Cons of Buying a House Now
    anemptytextlline
    anemptytextlline
  • 7 Family Activities You Can Do While You're Working From Home During the Coronavirus Pandemic
    anemptytextlline
    anemptytextlline
  • 6 Home Organizing Projects to Keep Your Children Busy While You're Working From Home During COVID-19
    anemptytextlline
    anemptytextlline
  • 10 Tips for Staying Productive When Working From Home During the Coronavirus (COVID-19) Pandemic
    anemptytextlline
    anemptytextlline
  • Business Continuity Planning in 4 Steps
    anemptytextlline
    anemptytextlline
  • Creating a Safety Culture in the Workplace
    anemptytextlline
    anemptytextlline
  • How to Onboard and Train Employees into a Safety Culture
    anemptytextlline
    anemptytextlline
  • An Engaged Workforce Can Improve Safety
    anemptytextlline
    anemptytextlline
  • Tips to Help Keep Employees and Visitors Safe in Parking Lots
    anemptytextlline
    anemptytextlline
  • 5 Tips for Childproofing Your Home
    anemptytextlline
    anemptytextlline
  • How to Prep and Open Your Pool for the Summer
    anemptytextlline
    anemptytextlline
  • Swimming Pool Safety Tips
    anemptytextlline
    anemptytextlline
  • Yard Safety
    anemptytextlline
    anemptytextlline
  • Tree Maintenance and Care
    anemptytextlline
    anemptytextlline
  • Summer Home Maintenance Tips
    anemptytextlline
    anemptytextlline
  • How to Help Prevent Heat Stroke
    anemptytextlline
    anemptytextlline
  • Types of Fire Extinguishers
    anemptytextlline
    anemptytextlline
  • How to Use a Fire Extinguisher [Video]
    anemptytextlline
    anemptytextlline
  • Cooking Fire Safety
    anemptytextlline
    anemptytextlline
  • The Science of Gas Grill Fires
    anemptytextlline
    anemptytextlline
  • Staying Safe in Work Zone Traffic
    anemptytextlline
    anemptytextlline
  • Share the Road
    anemptytextlline
    anemptytextlline
  • Car Safety Technologies that May Save Your Life [Video]
    anemptytextlline
    anemptytextlline
  • Choosing Safe Cars for Teens
    anemptytextlline
    anemptytextlline
  • How to Talk with Your Teen About Safe Driving
    anemptytextlline
    anemptytextlline
  • A Timeline for Getting Your Teen Driver on the Road Safely
    anemptytextlline
    anemptytextlline
  • How to Help Prevent Your Boat from Sinking
    anemptytextlline
    anemptytextlline
  • Developing a Storm Preparedness Plan for Your Boat: Tropical Storms and Hurricanes
    anemptytextlline
    anemptytextlline