Is my credit score = my insurance risk score ?

Submitted by Anonymous (not verified) on Wed, 12/20/2006 - 07:20

Hi I have heard that according to the insurance industry my credit scores are the same as my insurance risk scores. Now what does that mean! Does that effect my claims-n-payments history in any ways ?
regards, Synthia Mason

Posted: 20 Dec 2006 07:44 Post Subject:

hi dear, both of these scores mentioned by you reflect the status of your credit report after they have taken into account a number of factors contributing towards your final score. Hence, if you're gonna purchase your credit score from an agency it doesn't get you any idea of your real insurance risk score at all! Tx, Sasha T.

Posted: 20 Dec 2006 08:35 Post Subject:

Hi lemme clarify!
I'm sure that your regular credit scores value data that helps analyze the usage of your money while your insurance scores value data that helps to analyze your financial stability. You'd certainly be considered more stable incase you've paid your bills in time and had your accounts open for a longer duration. Hope you got that now!
regards, Fatman.

Posted: 20 Dec 2006 09:25 Post Subject:

hey people, I am finally back after a long lay-off :D
Coming to the query...... don't you think that the credit scores and the insurance scores move parallel owing to the changes of your credit history? Yes, I perfectly agree that there are the effects of your credit activities on a certain score at times. Brian

Posted: 20 Dec 2006 10:41 Post Subject:

hi !

Plz remember that there are a number of factors which these insurers take into account while judging your status as a prospective customer of auto or home policies. These factors may include your driving track record, the place you belong to and also most importantly your personal claims history.

BTW, hey Brian, nice to see you back amongst us, dear :D

Thanking you, Evan

Posted: 09 Jan 2007 01:30 Post Subject: YES, Insurance companies use your credit history!

I have been told by two agents that my credit has negatively affected my inusrance premium. In certain states it is legal for insurance companies to use your credit score to determine your "risk". I personally think this is total crap! It is just another excuse to rape the public of money! I for one am totally sick of it. We need to stand up and get laws passed to protect consumers from this type of fraud.

Posted: 09 Jan 2007 02:59 Post Subject:

Hi Dan,
Welcome to the AmPmInsure community. Please join the community and help it grow with your knowledge and experience in the days to come.
You can also use the forums to discuss about any type of insurance fraud here.
Looking forward to your active participation.
Thanks,
Evan

Posted: 21 Aug 2007 06:46 Post Subject: insurance

Hi ya'll!! My credit score is in the high 500's ( which isn't the best credit score in the world..LOL ) However................my car insurance rates are great! Life insurance, too!! Can I post 'my' insurance company, on this forum?

Posted: 21 Aug 2007 06:50 Post Subject: insurance

I think insurance companies take ALOT into consideration. Accidents, age, background, etc. I REALLY recommend the insurance company I have. They don't treat you as a 'policy number'..they treat you as a person!!

Posted: 05 Sep 2007 03:35 Post Subject:

FYI- Credit scores and insurance scores are NOT the same thing. They have things in common, but they are different animals.

Credit scores are primarily based on the most recent 36-48 months. While they include information that goes back further than that, the primary emphasis is on your last 3-4 years. For instance, if you had a 30-day late on your credit report that has occurred within the last few years, that affects your score more than if the late had happened 6 years ago.

According to FICO (the Fair-Issac Company), the predominant factors in your credit score are
late payments
age of accounts
utilization rates
mix of credit


Insurance scores are similar to FICO scores, but lend much more credibility to your credit history over a much longer period of time. They want to see a long-term history of handling credit wisely, and are more concerned over the last 7-10 years compared to the last 3-4 years.

A FICO in the 500s, unfotunately, is a low credit score and can impact your insurance rates heavily. While other factors such as age, driving history, place of residence, vehicle type, married/single, and coverage definitely affect your premium, more and more insurers are relying heavily on coupling that information with insurance scores to determine your final rate.

You could have a tremendous driving record, drive an average vehicle, and live in the safest part of the state and still have terrible insurance premiums. Keep in mind that all states now have laws and rules as to how an insurer may use credit, and a few states have banned it's use entirely.

If you could give me the state that you reside in, I could easily point out to you where you could find this information within your state.

Finally, here's a link that will take you to a public forum that deals directly with credit issues...I think that you will find it helpful. I have no interest in this site other than I think it's extremely helpful and would probably handle most, if not all questions that you may have. Of course, we would be more than happy to help you here at AMPMINSURE!

Here's the link: creditboards.com/mambo/

Good luck!

InsTeacher 8)

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