What is an auto insurance score? (2024)
Auto insurance scores range from 300 to 997, indicating the worst and best scores. An auto insurance score is what providers use to assess risk and set rates, considering factors such as credit, driving record, and claim history. We'll overview how these credit-based insurance scores affect your premiums.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
UPDATED: Oct 21, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Auto insurance scores are a method used by the best auto insurance companies to assess the risk level of potential policyholders.
Insurance companies learn your driving history and the likelihood you’ll file an auto insurance claim by looking at your auto insurance score. While drivers with higher auto insurance scores get lower rates, drivers with low scores get higher rates.
This article explores how auto insurance scores impact you as a driver, including the rates you’ll pay for coverage and how you can boost your insurance score to achieve lower rates. Once you know how your insurance score impacts rates, enter your ZIP code above to compare free quotes from the top providers.
- Insurers use auto insurance scores to assess a driver’s risk level
- Auto insurance scores are one of many factors used to set rates
- This credit-based insurance score might be low if you have a lot of debt
Understanding What an Auto Insurance Score Is
An auto insurance score is the rating insurance companies use to predict how likely you’ll file an insurance claim. Your insurance score is one of several factors molding the rate you’ll pay to insure your vehicle.
A higher car insurance score indicates to insurers that a driver is less likely to get into an accident or file an insurance claim in the future, something insurance companies often reward with lower rates. On the other hand, companies see drivers with low auto insurance scores as high risk.Daniel Walker Licensed Auto Insurance Agent
A low insurance score can result in higher rates or getting denied insurance coverage altogether. Find the cheapest auto insurance companies for high-risk drivers.
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How Credit Scores and Insurance Scores Differ
Although auto insurance companies often use credit scores to evaluate drivers’ risk levels, a credit score isn’t the same as an insurance score.
An auto insurance score assesses how likely a driver is to file an insurance claim for damages related to an accident. Auto insurance companies use it to determine the level of risk associated with insuring you, which can impact the rates an insurer offers.
On the other hand, a credit score assesses how likely a consumer is to make timely payments or default on debts. Creditors and lenders use credit scores to provide credit lines ranging from auto loans to personal credit cards.
Read More: How Credit Scores Affect Auto Insurance Rates
While traditional credit scores can impact your auto insurance score, the two ratings are different and get calculated separately based on their unique criteria. Find out why auto insurance companies use credit scores.
Auto Insurance Score Factors
Many factors affect car insurance rates, including age, location, driving, accident history, coverage limits, and more. Insurance scores also play an important role in calculating the cost of insuring your vehicle.
When it comes to determining your insurance rates and insurance score, multiple factors play a role, including:
- Age: A driver’s age can affect your car insurance rates. Typically, younger drivers pay higher rates to insure their vehicles than older, more experienced drivers. (Read More: Auto Insurance Rates by Age)
- Marital status: Insurance companies often view married couples as less risky to insure, which can sometimes result in higher rates for single drivers.
- Driving history: From speeding tickets to DUIs and other citations that could remain on your record for years, maintaining a clean driving record is important to keep your rates low.
- Vehicle’s location: Location plays an important role in determining rates, particularly if you live or park your vehicle in a ZIP code considered high risk by insurance companies.
- Vehicle type: Insurers perceive different types of vehicles as higher or lower risk. For example, a flashy sports car might be more costly to insure than a minivan or sedan.
- Homeownership: Insurance companies often view homeowners as lower risk than renters, and your rates can reflect this perception.
While your insurance score’s impact varies by insurer, the table below can offer insight into the average car insurance rates for U.S. drivers.
Full vs. Minimum Coverage Monthly Insurance Rates by Provider
| Insurance Company | Rates |
|---|---|
 | $160 |
 | $117 |
 | $87 |
 | $97 |
 | $87 |
 | $80 |
 | $174 |
 | $115 |
 | $105 |
 | $86 |
 | $99 |
 | $59 |
| U.S. Average | $119 |
Since insurance scores and rates vary by insurer, shopping around for quotes is the best way to determine which insurance company offers the best rates for your circumstances.
How Providers Calculate Your Car Insurance Score
Unfortunately, there’s no such thing as an insurance score calculator. Instead, the insurance score calculation process varies based on each insurance company’s proprietary methods and whether they utilize a third-party vendor, and it’s often impossible to know the specific factors that go into calculating a driver’s auto insurance score.
However, your accident history, moving violations from the last 10 years, previous insurance claims, and credit history can all impact your insurance score.
Among the various factors insurance companies consider when determining your insurance score, your credit history can significantly impact your car insurance rates. Factors that are often taken into consideration by credit bureaus when evaluating your credit history include:
- Late and on-time payments over time.
- The average duration of time between a bill’s payment and due date.
- Credit history length.
- Diversity of lenders and creditors.
- Number of credit inquiries.
- Number of open credit accounts that are in good standing.
- A low credit utilization compares to the amount of credit available.
- Previous defaults, including bankruptcies, foreclosures, repossessions, etc.
Understanding more about your insurance score is important to finding lower rates.
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How to Check Your Auto Insurance Score
Since the insurance score calculation process is proprietary, most insurance companies don’t provide answers about — or access to — your insurance rating. So, it’s not currently possible to check your auto insurance score.
Still, it’s possible to get a general idea of your insurance score by taking stock of your driving history, past insurance claims, and credit score. While your credit score is separate from your insurance score, insurance companies may be more likely to offer a better rate to drivers with higher credit scores. Learn more about auto insurance and credit scores.
Ways to Boost Your Auto Insurance Rating Score
Since good credit can positively impact your auto insurance score, it’s important to ensure your credit history reflects your ability to manage debts responsibly with no delinquencies. A few ways to boost your credit score include:
- Make on-time payments. By avoiding compounding interest and making payments on time to credit card companies and other lenders, your credit history will reflect your ability to manage your finances responsibly. This factor can result in more favorable rates from insurance companies.
- Diversify your credit. Diversifying credit can indicate you can manage different debt and liability types. However, exercising caution and judgment is important since a loan or credit card could negatively impact your credit score.
- Reduce credit utilization. Using less credit than is available to you can indicate your ability to manage your finances and debt responsibly.
If you want to find out why your auto insurance score is going down, you can get more info here.
More About What Affects Your Insurance Score
An auto insurance score is the car insurance companies’ rating to predict how likely you’ll file an accident-related insurance claim. Since it’s one of several factors determining the rate you’ll pay to insure your vehicle, your insurance score can play a significant role in determining your rates for car insurance coverage.
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— AutoInsurance.org (@AutoInsurance) February 13, 2024
By understanding the factors that make up your insurance score — and making responsible improvements to how you drive and manage your finances — you could boost your insurance score and lower the cost of insuring your vehicle over time.
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Frequently Asked Questions
Can getting an insurance quote impact my credit score?
Getting a quote for insurance coverage won’t affect your credit score, even when comparing quotes from multiple insurers.
Since insurance companies utilize a “soft pull” of your credit score when checking your credit, the inquiry isn’t visible to credit reporting agencies in the same way a “hard inquiry” for a credit application would be. So it won’t cause your credit score to drop.
Are rates for other types of insurance based on insurance scores?
Some other types of insurance use insurance scores to set rates. For example, like auto insurance, homeowners insurance also uses insurance scores to determine your coverage rates. When applying for homeowners coverage, the insurer looks at multiple factors to predict the likelihood that you’ll file a claim in the future, including your insurance score.
Do all insurance companies evaluate your insurance score?
Most auto insurance companies, and all major insurance companies, look at your insurance score when calculating rates. However, the use of insurance scores for determining rates is prohibited or limited in several states.
If you live in a state allowing the use of insurance scores and you have a low credit score or insurance score, consider getting a quote for a pay-per-mile car insurance policy or a high-risk auto insurance policy.
Why is an auto insurance score important?
An auto insurance score is important because it helps insurance companies assess the risk associated with insuring an individual. Insurers use this score to determine the premium amount you will pay for your auto insurance coverage. A higher score generally indicates a lower risk profile, which can result in lower premiums, while a lower score may lead to higher premiums or potential difficulties in obtaining coverage.
How is an auto insurance score calculated?
The calculation of an auto insurance score can vary between insurance companies, as each may use their own proprietary algorithms. However, common factors that are typically considered include credit history, driving record, previous claims history, the type of vehicle being insured, and demographic information. These factors are weighted differently by each insurer, resulting in a unique auto insurance score for each individual.
Do all insurance companies use insurance scores to determine rates?
Most auto insurance companies, including major insurers, use insurance scores as part of their process for determining the drivers’ rates. However, there are several states that prohibit using credit-based insurance scores to determine car insurance rates. Those states are:
- California
- Hawaii
- Massachusetts
- Michigan
Several other states also prohibit using credit-based insurance scores as the sole factor determining a driver’s insurance rates and limit the kinds of personal information used when calculating auto insurance rates. Since laws often differ between states, it’s best to check with your state’s insurance regulation division to determine whether insurance scores are permitted where you live.
What is a good auto insurance score number?
So, what’s a good auto insurance score? Since there’s no uniform car insurance score scale, each insurance company has its own car insurance rating scale that determines what a “good” and “bad” insurance score is. However, higher insurance scores are better than lower scores.
Like credit scores, auto insurance scores can range from 300 on the low end to 997 on the high end, depending on the company that calculated the rating. Find out more about what is a good auto insurance score.
Where is my auto insurance score on Credit Karma?
While you can’t check your car insurance score on Credit Karma, you can use it to get a free credit score or report from TransUnion and Equifax. These credit scores get used to set your insurance score.
Why is my auto insurance score low?
Usually, a poor auto insurance score is caused by a low credit score, a history of missing payments, or an extensive claims history.
What is a bad insurance score?
Again, while a bad car insurance score depends on the individual circumstances, most insurers consider a score below 500 to be poor.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.