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What Is An Insurance Score?

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A persons insurance score is a snapshot of how big a risk someone is to insure. Insurance companies use it to determine if they will insure you and if so how much to charge you for that insurance.

What Is In Your Insurance Score?

There are several things in your insurance score. They include:

  • History of Your Payments
  • Any Bankruptcies You May Have
  • Credit History Length
  • Your Outstanding Debt
  • Number of Times You Have Applied For Loans

Here Is What ‘s NOT In Your Insurance Score

Here is a list of things that is not in your insurance score:

  • Your Income
  • Your Ethnicity
  • Your Religion
  • Your Gender
  • Your Marital Status
  • Your Nationality
  • Any Disability’s that you may have
  • If You Are On Public Assistance

How Does Your Insurance Score Affect You?

Your insurance score can determine how much you pay in premiums. The worse your score the more you will pay. You may even be denied coverage based on your insurance score.

The Fact Is…

It may seem unfair that your credit score affects your insurance score. However, there have been several studies done by insurance companies and those who have a bad credit score also have more claims.

Insurance is all about risk. If you are a higher risk to insure you will pay more than someone who is at a lower risk. The insurance companies want to make money just like everyone else.

How Can You Get a Copy Of Your Insurance Score?

Unlike your credit score you cannot receive a copy of your insurance score. If you feel that you were denied insurance because of your insurance score you can contact your agent or the insurance company and ask them why you were denied. By law if you ask they have to tell you.

You Can Improve Your Insurance Score

There are things that you can do to actively improve your insurance score. They include:

  • Pay your bills on time. If you let them stack up it will hurt your score.
  • If you don’t have any credit history get some. Even if you just take a small loan out of a bank. Just don’t forget to pay it back on time.
  • Look at your credit report at least once a year. Errors in them can happen and you can’t fix them if you don’t know they are there.
  • If you do have an outstanding debt that you can’t pay off, work with the company you owe the debt to before it goes to collections.

Did You Know You Can Get Your Credit Report For Free

If you are denied insurance or a loan you can talk to the company that denied you. Ask them for the agency that gave them your credit report. If you contact that agency, they must give you a copy of what they gave the company for free.

What If You Are Not Denied For Insurance?

If you haven’t yet applied for insurance or a loan you can still get a copy of your credit report. There are 3 companies that you can ask for your credit report from. However, they may require a small fee. Those companies and their phone numbers are:

Now’s The Time To Improve Your Insurance Score

The fact is just because you may have a bad insurance score now doesn’t mean you can’t improve it. The best way to do it is to improve your credit score. Visit the websites of the credit agency’s above or call them now.


The following are a list of resources used to write this article:

Special thanks to Travelers for providing this information.

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