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INSURANCE SCORING AT A GLANCE
What is an Insurance Bureau Score, and where does it come from?
An Insurance Bureau Score is a snapshot of a consumer's insurance risk picture at a particular point in time based on credit report information.
Credit report information used in insurance scoring comes from:
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Outstanding debt
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Length of credit history
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Late payments, collections, bankruptcies
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New applications for credit
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Type of credit in use
U.S. Law is very specific about what should not go into an Insurance Bureau Score. The following information is prohibited and not used:
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Ethnic Group |
Nationality |
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Religion |
Age |
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Gender |
Income |
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Marital Status |
Address |
Why do insurance companies use Insurance Bureau Scores?
Tests by insurance companies and a major consulting firm compared Insurance Bureau Scores against the claims history of policyholders. The tests demonstrated the scores do predict the likelihood of claims. Good scores can all insurance companies to give lower rates to customers when other factors like type of vehicles and driving record would normally require higher rates.
How can I find out my Insurance Score?
Only insurance companies have access to Insurance Bureau Scores. However, your agent or insurance company can tell you your score and the reasons behind it.
How can I improve my Insurance Score?
One way to improve your insurance score is to improve your credit report. You can do this by:
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Paying bills on time
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Keeping balances low on unsecured revolving debt like credit cards
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Applying for and opening new credit accounts only as needed.
What if the information on my credit report is incorrect?
If you find errors in your credit report, you should report them to the credit bureau. By law, the bureau must investigate and respond to you within 30 days. To order a copy of your credit report, call any of these toll free numbers. Some fees may apply. Alternatively, you can go to their web site and find more information there on how to obtain your credit report.
Also, you are entitled to obtain a free credit report annually. You can order online at http://www.annualcreditreport.com, or by calling 1-877-322-8228. If you prefer, you can mail a request to:
Annual Credit Report Request Service
P. O. Box 105281
Atlanta, GA 30348-528
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