Ask Gina – Insurance Scores

Q:  Hey Gina, what is an insurance score?

A: An insurance score is a numerical point system utilized by insurers to predict risk.  It is a key component to determining the total premium that an individual will pay for auto, homeowner’s, life and health insurance.

Scores typically range between a low of 200 and a high of 997, with a score of 770 or higher typically considered to be “good” and a score below 500 considered as “poor.” It is possible to have a “perfect” score, but it is rare.  

An insurance score differs from a credit report and does not affect credit score. While an individual’s credit score is not part of the criteria for determining an insurance score, their credit history is part of the scoring model. Accident and insurance claims history are also considered.

Working to improve your credit score by paying bills on-time and lowering the amount of your debt can help you improve your insurance score.

A person’s insurance scores can vary from company to company based on the specific criteria that company utilizes. Your independent insurance agent can offer you guidance and help you compare products from many different insurance companies to ensure you’re getting the best combination of price, coverage and service.