Credit based insurance scores - What are they?

Submitted by Anonymous (not verified) on Wed, 01/28/2009 - 10:06

Heard of insurance scores..but what is a credit-based insurance score!

Posted: 28 Jan 2009 01:24 Post Subject:


I guess your credit-based insurance scores are the same as that of your insurance risk scores. Such scores could be achieved after a careful consideration of the financial data ascertained by the 3 credit bureaus. Now, over here the most important thing that you need to understand is the connection between your credit history and the probabilities of your filing for insurance claims. Once you achieve a bad credit, the chances are more that your insurer would consider you as a heavier risk.

Regards, fatman

Posted: 28 Jan 2009 04:17 Post Subject: insurance

Do Insurance companies actually check your credit when they are considering your Insurance premium 'status'? I never knew that. I don't know if 'my' Insurance company did that or not.

Posted: 29 Jan 2009 09:34 Post Subject:

Once you achieve a bad credit, the chances are more that your insurer would consider you as a heavier risk.

I think most of our carriers would keep insurance scores a secret. That is the reason a majority of the consumers haven't even heard of insurance scores. While all the insurance carriers won't even bother to mention the insurance scores in the paper-works, they would always take these scores into account while determining whether or not to issue a particular coverage to an applicant. It would also play an important role to determine the premium for an individual.

Posted: 29 Jan 2009 11:33 Post Subject: insurance's another example of someone ( in this case, an Insurance company) treating the consumer as a number. What happens if the Insurance company DOES pull a Credit check and you have bad credit? .....and they determine your premiums BASED on your score, however, you're a REALLY good driver? Should they just ASSUME you're NOT a good driver because you have bad credit? IE: I'm a good driver..nothing on my record.............however, I have a low credit score. It's almost like a 'Catch 22'.

Posted: 29 Jan 2009 12:45 Post Subject:

It may not sound fair to some SD and I am sure there are people out there with low scores but yey they are a good driver. You have to take into account the ones that are not as honest and are more likely to file a claim. Insurance is a valuable thing. Would you take something valuable and just hand it out to anyone or would you give it to someone who has a good record? You have to think insurance companies take risks insuring people all the time. There are those who are not as big of a risk. Looking at your credit score does give an idea of a person.
BUT like I was saying ..this doesn't mean everyone with low credit is a risk...

Posted: 29 Jan 2009 12:53 Post Subject:

Heard of insurance scores..but what is a credit-based insurance score!

Most property and casualty insurance companies do run credit scores to be used in determining an insurance premium.

The philosophy seems to be that if a person is always late in making payments to his/her creditors, the ability to make regular insurance premium payments will be less than someone who always pays their debts on time. That seems to make sense, but whether it is true or not, I personally just don't know.

Our credit seems to be a part of just about anything we do.

Posted: 29 Jan 2009 03:48 Post Subject: insurance

Well, FIREYONE...I DO get your point. Insurance is a "valuable thing" to have. And you're not driving legally without it. And I do agree with the 'credit thing' you said.........a credit score is just abunch of numbers. really.....with a credit score you really CAN'T tell much about a person.

Posted: 06 Feb 2009 10:11 Post Subject:

On the bank or insurer's viewpoint, they have fewer options to judge a client. Hence I think, there may be a possibility of these scores being important at times. And for a new credit card issues, I am sure that these scores, history have played vast role.

Posted: 21 Jul 2011 09:36 Post Subject:

I didn't heard that term before and want to know what are the specifications of a insurance score.

Posted: 22 Jul 2011 11:38 Post Subject: Insurance

My driving record is pretty good. My 'Full coverage' insurace is at a pretty reasonable rate. However..I know people, my age, and they SAY they have good driving recored, as well.......but,.......they are paying SKY HIGH insurance rates and have vehicles that are older than mine (I have a '99 Malibu).

Posted: 11 Aug 2011 08:09 Post Subject:

Your credit can influence insurance rates and products too. Insurance scores allow insurance companies to look at credit related information and decide how cost-effective you are likely to be. Bad credit and insurance scores can price you out of the market, or make some products unavailable to you. Insurance companies have been on this bandwagon for a while. They look at credit related information and make judgments about your prosperity and productivity as an insurance policy owner.

Loss Assessor

Posted: 31 Mar 2012 10:41 Post Subject:

Thanks for all the great information on credit score related to car insurance

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