The major thing that the auto insurance company is trying to determine is how much risk is involved to insure you as a driver and your likelihood of filing a claim. Their goal is to pay out as little as possible for each insured driver.
In general, the higher your auto insurance score, the lower you can expect your car insurance premium to be. If you have a low score, however, you will pay more and may need to get high-risk auto insurance.
Enter your zip code above to compare car insurance rates from multiple companies and find the best deal, no matter what your score is for auto insurance.
- Auto insurance scores determine auto insurance coverage rates
- Auto scores are determined by credit scores, driving records, and risk profiles
- Low auto insurance scores do not prevent drivers from getting an insurance policy
Factors that Make Up Your Auto Insurance Score
Your auto insurance score is based on many different things that auto insurance companies have determined are helpful in determining your risk level as a driver. Take a look below to see the exact auto insurance score meaning.
Your credit score is just one of the things that make up your overall auto insurance score. It depends on a variety of factors, such as your credit score, your driving history, your claims record, and other information found in your credit report.
Some possible reasons for a dip in auto insurance score and increased rates include:
- Claims History: Filing multiple insurance claims within a short period can indicate a higher risk of future claims, resulting in a decrease in your insurance score.
- Change in Credit Score: In some jurisdictions, insurance companies consider credit-based insurance scores as a factor in determining premiums. If your credit score has decreased, it can lead to a lower insurance score (Learn More: How Credit Scores Affect Auto Insurance Rates).
- Change in Risk Profile: If there have been changes in your personal circumstances that increase your perceived risk as a driver, such as a change in occupation, moving to a high-risk area, or purchasing a high-performance vehicle, it can cause your insurance score to decline.
- Insurance Company Factors: Insurance companies may periodically update their risk models or change their underwriting guidelines, which can result in a decrease in your insurance score even if your circumstances have remained the same.
- Traffic Violations: If you have recently received a traffic ticket or were involved in an accident, added driver points can negatively impact your driving record and lead to a lower insurance score.
If any of these factors takes a hit, then your overall insurance score could be adversely affected, and you could end up with a car insurance rates increase.
For example, if you have recently had a negative incident in your credit history, such as filing for bankruptcy or having an overdue bill sent to collections for payment, then you may see a corresponding dip in your auto insurance score and higher rates.
While you may be discouraged at first if your credit and insurance scores have taken a hit, the good news is that there are concrete things that you can do to get both your insurance and credit score up.
If you target a specific source of short-term debt that you can pay down, such as paying off a high-interest credit card, then you can see a direct impact on your credit score and auto insurance score.Brandon Frady Licensed Insurance Producer
Another way to increase your credit score is to pay off any bills that are being threatened to be immediately sent to collections. If you need help in figuring out how to handle this, then you may need to consult with a credit counselor to get a plan on how to best pay off your personal debt.
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How to Improve Your Auto Insurance Score
If you are interested in improving your auto insurance score, then you are probably looking for ways to lower the amount that you have to pay for your car insurance coverage.
This is a smart move, especially if you are currently in the process of searching for more affordable quotes for your car insurance.
In addition to trying to improve your credit score, you can find other things to change to make you appear to be a less risky driver to insure.
One of the most direct ways that you can make sure your auto insurance score does not take a hit is to try to avoid filing any claims for damage to your car. While some forms of car damage will be far too expensive for this plan and will require you to file a claim to have them fixed, others, such as a cracked windshield, are more suited for out-of-pocket payment.
Learn More: Can I cancel an auto insurance claim after filing it?
Even though you will be shelling out money for a car fix in the short term, it could end up saving you plenty of money down the line on the car insurance premium that you will have to pay.
Lowering Your Auto Insurance Rates
Not all scores are considered equally by all auto insurance companies; this is why so many industry experts advise shopping around for multiple quotes for car insurance rates. Because one of the factors affecting your auto insurance score is your credit rating, see how rates vary among companies by credit score.
Full Coverage Auto Insurance Monthly Rates by Provider & Credit Score
| Insurance Company | Good Credit | Fair Credit | Bad Credit |
|---|---|---|---|
 | $135 | $165 | $245 |
 | $166 | $197 | $296 |
 | $116 | $136 | $203 |
 | $95 | $115 | $175 |
 | $140 | $161 | $269 |
 | $82 | $100 | $148 |
 | $177 | $226 | $355 |
 | $120 | $133 | $166 |
 | $109 | $138 | $206 |
 | $91 | $118 | $200 |
 | $120 | $155 | $230 |
 | $107 | $128 | $194 |
| U.S. Average | $123 | $148 | $226 |
If your auto insurance score is low because of driving record issues, shop around at companies based on driving record instead.
Auto Insurance Monthly Rates by Driving Record & Provider
| Insurance Company | One Ticket | Clean Record | One DUI | One Accident |
|---|---|---|---|---|
| $195 | $166 | $303 | $237 |
| $131 | $116 | $177 | $167 |
 | $139 | $111 | $201 | $175 |
| $176 | $140 | $191 | $199 |
| $217 | $177 | $325 | $237 |
| $145 | $120 | $252 | $165 |
| $143 | $109 | $147 | $190 |
| $102 | $91 | $124 | $107 |
| $148 | $107 | $230 | $157 |
| U.S. Average | $152 | $123 | $218 | $177 |
If you are not able to get a reasonable rate from a specific car insurance company, this does not mean that all hope is lost. Ask around about different discounts that you may be entitled to so that you can get a more reasonable rate.
For example, if you are a younger driver, then you may qualify for a good student discount. Some insurance companies also offer discounts for taking defensive driving classes and for paying premiums up-front. This could help offset your having a lower insurance score because of your relatively short driving history.
What To Do When You Can’t Get Auto Insurance
If you are totally striking out in getting approved for auto insurance coverage from any of the companies that you have checked into, then you may need to resort to going through your state department of insurance.
Read More: Can an auto insurance company deny you coverage?
There is always a way to get some coverage, but this may mean you will be paying a higher rate.
If you take steps to improve your insurance score, including by raising your credit score, then you are able to reapply for traditional auto insurance quotes after a relatively short period of time.
If you are curious about what your credit score is, you are always able to get a copy of your credit report. This is recommended because you can also find out if there are any mistakes in the report that you need to correct.
Finding Cheap Auto Insurance Rates With Your Auto Insurance Score
Your auto insurance score is one of the considerations that the auto insurance company uses to determine what rate to quote you for a car insurance policy.
While it is true that your credit score is directly linked to the rate that you will have to pay for car insurance, your driving record is just as important.
If you focus on paying down your debts, keeping a clean driving record, and applying for the best auto insurance discounts, you are well on your way to getting your credit and insurance score back up where you would like it to be.
If your car insurance keeps going up, make sure to enter your zip code below to find rates from local insurance companies that work with your budget.