What Does An Insurance Score Mean?

Find out more about insurance scores, including how they effect premiums and how to raise yours.

While most people understand what a credit score is and how it is calculated, fewer people understand what an insurance score is and how it influences their premiums.

What is an insurance score, and how can I obtain one?

An insurance score, also known as an insurance credit score, is a three-digit number assigned to you in order to predict the possibility of an accident or insurance claim in the future. Scores of 770 or more are considered good, scores of 500 to 770 are considered ordinary, and scores of 500 or less are considered poor.
Different insurance companies may use different models to determine your insurance score, which has a direct bearing on your premium. You will almost likely pay a higher premium if your insurance score is lower, just as you will pay a higher interest rate if your credit score is lower, and vice versa.

What Is an Insurance Score, and How Does It Work?

Insurers calculate your insurance score in a variety of ways, but they normally utilize information from your credit history, as well as risk and insurance claim data. For auto insurance, a person with a clean driving record is more likely to get a higher insurance score than someone with a history of traffic infractions or accidents, but your driving record does not always have an impact on homeowners insurance. Your insurance score is calculated using your credit information: if you have a history of making on-time payments and have little debt, your insurance score will reflect that. As you get older or move, your insurance score may alter.

Is There Anything I Can Do to Raise My Insurance Score?

Improving your insurance score is possible, but it will take time. If you have a low insurance score, it may signal that you have made late or missed payments, which are negatively impacting your credit score. Paying your bills on time is an excellent strategy to raise your credit score and, as a result, your insurance rating.

A good driving record may also aid in improving your insurance score and lowering your vehicle insurance prices. If you have a history of traffic violations, beginning a new habit of not receiving tickets or being involved in accidents will improve your score over time. Consider taking a defensive driving course to improve your driving skills.

While certain auto claims are unavoidable, you may put yourself in a position to decrease the likelihood of them occurring.

Keep it up to date on a regular basis. Your Vehicle’s Inspections: Keep an eye on the parts of your car that are most susceptible to wear and tear. In the winter, when driving conditions may be more difficult, check your tire tread for wear. Rotating your tires every 5,000 miles, as well as inspecting the tread, will help to guarantee that your tires wear evenly. It’s also a good idea to check your brakes on a regular basis to ensure they’re in good operating order. The difference between an accident and a near-miss can be determined by the quality of your brakes. Having your automobile serviced by a skilled technician at least once a year is an excellent method to ensure that it is in good working order.

To limit the danger of damage to your vehicle, keep it in a garage or carport if at all possible. While hailstorms and falling tree limbs may inflict harm to your vehicle’s body, you’re more likely to avoid vandalism and theft if you can enclose your vehicle in a garage. If you can’t cover your vehicle, make sure it’s locked and parked away from trees. Although it’s difficult to predict how much damage a storm will produce, keeping your vehicle shielded can give you some extra peace of mind.

Stick to Routes You Know: By sticking to routes you know, you’ll be less likely to encounter any potentially dangerous surprises along the way, such as sudden steep turns, flood-prone areas, or other hazards. While it’s impossible to completely avoid the inherent risks of driving, remaining on known roads increases your chances of safely traveling from point A to point B.

You might be interesting to see what your premium would be depending on your insurance score now that you know what it is. Click the symbol below to contact a NYCM Insurance representative in your area.