What is a good auto insurance score?
What is a good auto insurance score? Auto insurance scores range from 300 to 997. Improve your score by (1) paying down debt, (2) driving safely, and (3) resolving minor damage yourself. One at-fault accident can decimate your score and raise your rates by as much as $1,000 annually.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Most companies use your insurance score to figure out your risk level as a driver
- The formula used to generate your insurance score is based on your auto accidents and auto insurance claim record as well as information from your credit history
- Your insurance score is focused on the likelihood that you will have an accident or need to file a claim under your auto insurance policy or how much money you may cost your insurer
- Your total insurance score could be anywhere between 300 and 997
What is an auto insurance score? Even though they sound similar, your insurance score and your credit score are actually two different things. Your insurance score helps auto insurance companies determine what coverage rate to charge you, as it evaluates your risk as a driver.
Insurance companies are trying to figure out the likelihood that you will eventually file a claim under your policy. The fewer claims you file, the better your score.
As a general rule of thumb, drivers who end up filing a claim are more expensive to insure. The higher your score, the lower the rate you will be quoted for insurance. Other factors, such as your payment history, credit history, accident history, and overall insurance history are all used to calculate your insurance risk.
What is an auto insurance score? Even though they sound similar, your insurance score and your credit score are actually two different things. Using credit scores to calculate your insurance score helps determine what coverage rate to charge you, as it evaluates your risk as a driver.
Insurance companies are trying to figure out the likelihood that you will eventually file a claim under your policy. The fewer claims you file, the better your score.
As a general rule of thumb, drivers who end up filing a claim are more expensive to insure. The higher your score, the lower the rate you will be quoted for insurance. Other factors, such as your payment history, credit history, accident history, and overall insurance history are all used to calculate your insurance risk.
What Determines Your Insurance Score?
In general, your auto insurance score is based on your credit score and claims history report. Let’s take a look at what just one at-fault claim can do to your rates.
| Auto Insurance Claim Data | Dollar Amount |
|---|---|
| Average liability claim for property damage | $3,638 |
| Average liability claim for bodily injury | $15,270 |
| Average auto insurance rate increase after an at-fault accident | $1,000 |
Even if you have not filed a claim with your current insurance company, an insurer may be able to find your past claims history with other companies through private databases that major insurance companies subscribe to.
Insurance companies submit claims information for each of their clients to these databases. The two major databases for claims information about drivers are the Automated Property Loss Underwriting System (A-PLUS) and the Comprehensive Loss Underwriting Exchange (CLUE).
Your credit score is considered in determining your insurance score because your credit history is an indicator of your financial responsibility.
Auto insurance companies have found those with a good credit report are statistically less likely to end up filing a claim under their auto insurance policies, so they end up with a lower insurance cost than someone with a poor credit report.
Some of the factors that influence your credit score are:
- Outstanding debt
- History of making payments on time
- Credit mix and credit utilization
- Whether you have ever filed for personal bankruptcy
- Current loans
- The ratio of your debt to income.
This information is compiled into an auto insurance score chart that comprises a great deal of information, including vehicle type, driving history, location, credit score, and other factors.
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What is a general range for insurance scores?
There are two major independent companies that generate insurance scores: the Fair Isaac Corporation and ChoicePoint. Both companies offer a range of scores. The higher the score, the lower-risk driver you are considered to be by the insurance industry.
Under the Fair Isaac Corporation, the current insurance scoring model called a FICO score, awards a score between 300 and 900. A FICO score above 700 is typically a decent score for an insurer.
What is a good auto insurance score?
Under the ChoicePoint insurance scoring system, insurance scores are between about 300 and 997.
What is the best auto insurance score? 997 is the highest and best score, and other numbers close to it will help get you better coverage rates.
The benchmark for insurance scores to translate to lower insurance premium rates will differ according to each auto insurance company.
Some companies will have higher standards for insurance scores than others, which makes it a smart idea to shop around if you are concerned about a low insurance score based on what you know about your insurance history.
Ask your insurance company if there are good driver discounts available for insured drivers who have a certain length of time on their driving record without an accident or claim. You could also see if there are Occasional Driver Insurance Rates you could take advantage of.
Are there ways to improve your insurance score?
As noted above, insurance scores use your credit history to calculate your rating. One of the most effective ways to improve your insurance score is to improve your credit score.
If you have debt that you are able to pay off, such as credit cards, it can seriously improve your credit score. It may also be smart not to take out any new lines of credit for a certain period of time.
For any bills that are past due, do your best to get them taken care of as quickly as possible. Poor credit is a huge factor in calculating your insurance premium, second only to your insurance history.
Another effective way to improve your insurance score is to not have any claims for a certain length of time in order to tidy up your insurance history and fix a poor score.
Other than practicing safe driving habits, resolving any minor damage to your automobile or incidents without contacting your insurance company can save you money down the line and help you avoid a decrease in your insurance score.
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What do you need to know about your auto insurance score?
Along with other criteria like marital status, age, and your insurance score is the methodology used by auto insurance companies to determine the probability that you will file a claim under your policy. Though it was used in the past, many states now prohibit insurers from using gender to determine rates.
The major things that affect your auto insurance score are your credit score and claims history. Even if you filed a claim under another insurance policy, this information could be submitted to a universal private database that is used by all of the major auto insurance companies.
To get the lowest insurance quote possible on your premium, you want to have the highest insurance score you can. Take steps to improve your credit score and avoid filing claims in order to increase your insurance score.
Frequently Asked Questions
What is an auto insurance score?
An auto insurance score is a numerical rating used by insurance companies to assess the risk associated with insuring a particular individual. It is based on various factors such as credit history, driving record, age, type of vehicle, and insurance claims history. The score helps insurers determine premiums and eligibility for coverage.
How is an auto insurance score calculated?
The exact calculation method for an auto insurance score can vary among insurance companies. Generally, it involves analyzing data from credit reports, motor vehicle records, and other relevant sources to assess the likelihood of filing insurance claims. Each factor is assigned a weight, and the scores are generated based on a proprietary algorithm.
What is considered a good auto insurance score?
The specific range or threshold for a good auto insurance score can vary among insurance companies. Generally, a higher score indicates a lower risk profile, leading to better insurance rates and more favorable coverage options. However, the exact interpretation of a good score may differ among insurers.
Can I find out my auto insurance score?
Insurance companies typically do not disclose the exact auto insurance score they use for rating purposes. However, you can check your credit score and maintain good credit, as credit history often plays a significant role in determining the auto insurance score. Monitoring your credit report for accuracy and addressing any issues can positively impact your overall score.
How can I improve my auto insurance score?
Tips for improving your auto insurance include:
- Maintain good credit: Pay bills on time, reduce debt, and keep credit utilization low.
- Maintain a clean driving record: Observe traffic laws, and avoid accidents and traffic violations.
- Choose your vehicle wisely: Some vehicles have higher insurance costs due to factors like safety ratings and repair costs.
- Regularly review and update your insurance coverage: Ensuring you have appropriate coverage and limits can help maintain a favorable score.
Can my auto insurance score affect my insurance premiums?
Yes, your auto insurance score can affect your insurance premiums. Insurers use the score as one of the factors in determining your premium rates. A higher score is generally associated with lower premiums, while a lower score may result in higher premiums or limited coverage options.
Is an auto insurance score the same as a credit score?
No, an auto insurance score and a credit score are different. An auto insurance score focuses on factors relevant to insurance risk assessment, such as credit history, driving record, and claims history. A credit score, on the other hand, evaluates your creditworthiness and financial reliability based on credit-related information.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.