How to Lower Your Insurance Rate With Your Insurance Score


You’re familiar with a credit score, but you may have not known that you also have an insurance score.  Insurance scores are a factor designed to predict the likelihood that an insured driver will file an insurance claim.  You can avoid paying more for insurance premiums by lowering your insurance score. 

What is an insurance score?

An auto insurance score is a numerical score (typically 3 digits) that helps predict the likelihood that you’ll be involved in a car accident or file an insurance claim.  These scores are calculated using information from your credit reports such as:

·      The age of your credit history

·      Credit utilization

·      Missed payments

·      Number of accounts in good standing

Car insurers use your auto insurance score as one of the many factors to determine your insurance rate.  


How does my insurance score affect my rates?

Similar to how your credit score affects your interest rates, your auto insurance score affects your auto insurance rate.  In some states, insurance companies use your auto insurance score as one of the many factors that determines your rates.  The higher your insurance score is, the more you are considered a low risk driver and will qualify for lower insurance rates.  If your insurance score is lower, your auto insurances will most likely be higher.  However, insurance scores are only one of the many factors insurance companies use to determine your rate.    


How can I improve my insurance score?

You can check your auto insurance score from TransUnion for free on Credit Karma.  Once you are aware of your score, there a few things you can do to improve them. 

·      Pay down debt: Look at your revolving credit utilization.  If you are using above 30%, work at paying down your debt so your credit utilization ratio is not too high.

·      Make payments on time: Use a calendar or set payment reminders so you never miss a credit card payment.  

·      Keep those old accounts and unused credit cards: Old accounts show a long-established credit history.  By closing an unused account, you lose some of your track record and reduce your overall credit limit.  This ends up being more harmful than helpful.

·      Keep a good mix: Adding flavor to your types of credit lets creditors and insurance companies know that you can responsible manage a mix of credit types.  Credit cards, installment loans and revolving credit are all different types of credit.

Auto insurance scores are just one of the tools insurers use to set your rate.  It’s important to shop around for a policy that meets your needs and budget.  Unlike other major insurance carriers, Crisp Insurance offers a variety of options that can fit into your budget and lifestyle.  Because we are independent agents, we help you pick the best products for you, your family, and your business with no bias.  Get your free, custom, no obligation quote here or give us a call at 330.572.1660.