Why is my auto insurance score going down?

Your auto insurance score is based off the information in your credit report as well as your driving record, accident history, claims history and driving record.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 16, 2021

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Things to remember...

  • You may be very familiar with your regular credit score, but an insurance score also is used for determining how much you will have to pay for your auto insurance coverage
  • Your auto insurance score is based off the information in your credit report as well as your driving record, accident history, claims history and driving record
  • Your credit score has a direct impact on your auto insurance score, so if you have had any negative credit history lately, this could cause your insurance score to take a dip
  • Even if you have a low insurance score, this may not mean that you are prevented from being able to get an auto insurance policy
  • If you have filed a claim through your auto insurance recently, this is another reason why your auto insurance score could have gone down a bit because it shows that you are more likely to file another claim in the future

Your auto insurance score is one of the most basic ways that car insurance companies figure out how much to charge you for your auto insurance coverage. It is made up of a long list of factors, including information that is available in your credit report and your driving record.

You may also sometimes see an insurance score referred to as an insurance credit score, but they mean the same thing.

Essentially, your auto insurance score is a rating used to determine how much risk is involved to insure you as a driver. The major thing that the auto insurance company is trying to determine is your likelihood of filing a claim.

Their goal is to pay out as little as possible for each insured driver. In general, the higher your auto insurance score, the lower you can expect your car insurance premium to be.

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Factors that Make Up Your Auto Insurance Score

Your auto insurance score is based on many different things that auto insurance companies have determined are helpful in determining your risk level as a driver.

Your credit score is just one of the things that make up your overall auto insurance score.

However, if you have recently had a negative incident in your credit history, such as filing for bankruptcy or having an overdue bill sent to collections for payment, then you may see a corresponding dip in your auto insurance score.

While you may be discouraged at first if your credit and insurance scores have taken a hit, the good news is that there are concrete things that you can do to get both your insurance and credit score up.

For example, if you target a specific source of short-term debt that you can pay down, such as paying off a high-interest credit card, then you can see a direct impact on your credit score and auto insurance score.

Another way to increase your credit score is to pay off any bills that are being threatened to be immediately sent to collections. If you need help in figuring out how to handle this, then you may need to consult with a credit counselor to get a plan on how to best handle paying off your personal debt.

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Improving Your Auto Insurance Score

If you are interested in improving your auto insurance score, then you are probably looking for ways to lower the amount that you have to pay for your car insurance coverage.

This is a smart move, especially if you are currently in the process of searching for more affordable quotes for your car insurance.

In addition to trying to improve your credit score, you can find other things to change to make you appear to be a less risky driver to insure.

One of the most direct ways that you can make sure your auto insurance score does not take a hit is to try to avoid filing any claims for damage to your car.

While some forms of car damage will be far too expensive for this plan and will require you to file a claim to have them fixed, others, such as a cracked windshield, are more suited for out-of-pocket payment.

Even though you will be shelling out money for a car fix in the short-term, it could end up saving you plenty of money down the line on the car insurance premium that you will have to pay.

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Ways to Lower Your Premium

Not all scores are considered equally by all auto insurance companies, this is why so many industry experts advise shopping around for multiple quotes for car insurance rates.

If you are not able to get a reasonable rate from a specific car insurance company, this does not mean that all hope is lost.

Ask around about different discounts that you may be entitled to so that you are able to get a more reasonable rate.

For example, if you are a younger driver, then you may qualify for a good student discount. Some insurance companies also offer discounts for taking defensive driving classes and for paying premiums up-front.

This could help offset you having a lower insurance score because of your relatively short driving history.

Problems Getting Insurance

If you are totally striking out in getting approved for auto insurance coverage from any of the companies that you have checked into, then you may need to resort to going through your state department of insurance.

There is always a way to get some sort of coverage, but this may mean you will be paying a higher rate.

If you take steps to improve your insurance score, including by raising your credit score, then you are able to reapply for traditional auto insurance quotes after a relatively short period of time.

If you are curious about what your credit score is, you are always able to get a copy of your credit report. This is recommended because you can also find out if there are any mistakes in the report that you need to correct.

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Why Your Score May Have Gone Down

Your auto insurance score is one of the considerations that the auto insurance company uses to determine what rate to quote you for a car insurance policy.

It depends on a variety of factors, such as your credit score, your driving history, your claims record, and other information found in your credit report.

If anyone of these factors takes a hit, then your overall insurance score could be adversely affected, and you could end up having to pay more for your auto insurance.

While it is true that your credit score is directly linked to the rate that you will have to pay for car insurance, your driving record is just as important.

If you focus on paying down your debts and keeping a clean driving record, then you are well on your way to getting your credit and insurance score back up where you would like it to be.

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