Auto insurance scores are ratings based on information from credit reports that insurers use to estimate how likely drivers are to file a claim. Insurance scores have different ranges depending on the scoring company, but lower scores always mean that drivers are riskier to insure and will likely pay a higher premium.
Key Things to Know About Auto Insurance Scores
- Auto insurance scores are based on your credit history, not your driving history.
- Scores correlate with a driver’s likelihood of costing the insurer money down the road.
- Insurance scores usually come from Fair Isaac Corporation (FICO), LexisNexis, and TransUnion.
- A good insurance score is roughly 700 or higher, though it differs by company.
- You can improve your auto insurance score by checking your credit reports for errors, managing credit responsibly, and building a long credit history.
- California, Hawaii, and Massachusetts have banned the use of credit when calculating auto insurance rates.
Get Your Free Auto Insurance Score
Table of Contents
Comparing Common Auto Insurance ScoresHow To Get Your Auto Insurance ScoreWhat Is A Good Auto Insurance ScoreHow To Improve Your Auto Insurance ScoreAuto Insurance Scores VideoAuto Insurance Score FAQ
Compare Common Auto Insurance Scores
| Provider | Auto Insurance Score | Score Range | Credit Report Used | Cost |
|---|---|---|---|---|
| Fair Isaac Corporation (FICO) | FICO Credit-Based Insurance Score | 250-900 | TransUnion | Not available to consumers |
| LexisNexis | LexisNexis Attract Auto Insurance Score | 200-997 | Equifax | Available to consumers by calling LexisNexis |
| TransUnion | TransUnion True Risk Score | 150-950 | TransUnion | Not specified (contact bureau for more information) |
Your auto insurance score, like a credit score, is an indicator of your risk. And auto insurance scores are largely based on the same information as traditional credit scores. But rather than using that information to assess your position as a borrower, it’s filtered through a different lens, producing results tailored to the insurance industry. For example, the table below shows how FICO considers different aspects of your credit report when calculating your auto insurance score.
FICO Insurance Score Rating Factors
| Credit Information Category | Scoring Weight |
|---|---|
| Payment History | 40% |
| Amounts Owed | 30% |
| Length of Credit History | 15% |
| New Credit | 10% |
| Types of Credit Used | 5% |
How To Get Your Auto Insurance Score
Unlike credit reports, you’re not entitled to any free auto insurance scores. The only way you can check your auto insurance score is by calling LexisNexis at 866-897-8126. The other two major companies do not provide scores to consumers.
If you’ve always paid your bills on time and have a long credit history, you can rest assured that you probably have a high auto insurance score. After all, your insurance score is largely tied to your standard credit score.
What Is A Good Auto Insurance Score?
A good auto insurance score is usually anything above 700, and a higher score is always better. But it’s important to remember that each auto insurance score provider and car insurance company has its own definition of a “good” score.
Good Auto Insurance Scores by Provider
| Insurance Score Provider | Good Score Range | Poor Score Range |
|---|---|---|
| FICO | 700-900 | 250-500 |
| LexisNexis | 776-997 | 200-500 |
| TransUnion | 776-950 | 150-500 |
Learn more about what a good auto insurance score means.
How To Improve Your Auto Insurance Score
1. Improve your credit score.
When your credit score goes up, your auto insurance score usually does, too. Similarly, when your credit score goes down, your auto insurance score generally falls. For example, people with no credit pay an average of 67% more on car insurance than those with excellent credit. And looking at car costs more broadly, excellent credit will save youmore than $6,000 in intereston a five-year car loan, compared to fair credit.
In other words, you should probably check your latest credit score, which you can do for free on WalletHub. Checking out ourtop credit improvement tipswouldn’t hurt, either.
Get Your Latest Credit Score – 100% Free
2. Be as financially responsible as possible.
Since your standard credit score heavily affects your auto insurance score, you should aim to improve your standard score. This means paying bills on time, having low credit utilization, and making other good choices. To learn about other ways to improve your credit, check outWalletHub’s guide.
3. Be a safe driver.
Things like speeding tickets and insurance claims don’t factor into your car insurance score. But they are considered alongside your score when insurance companies determine your premium. And that means your ability to avoid accidents and citations has a big impact on your ability to save money. Making improvements in this area could also save your life.
4. Stay on top of your credit history.
Byjoining WalletHubfor free, you’ll have access to daily-updated versions of your credit score and report, as well as a personalized credit analysis that advises you on how to improve.
At the end of the day, auto insurance scores won’t have as much of an impact on your life as credit scores. But they’re still an important tool that you should know how to use.
Auto Insurance Scores Video
Auto Insurance Score FAQ(28 questions)
Most Popular
What is an insurance score?
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WalletHub
@WalletHub
An insurance score is a number based on your credit history that is used to predict your likelihood of filing an insurance claim and costing an insurer money. Auto insurance scores, also called credit-based insurance scores, can be used to set car insurance premiums everywhere except for Massachusetts, Hawaii and California.
The credit-scoring company FICO created the first insurance scores in 1993, and today FICO estimates that 95% of all personal insurers take insurance...
2
How can I increase my auto insurance score?
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4
Lilah Butler, Car Insurance Writer
You can increase your auto insurance score by making sure you build a long and healthy credit history. Keep in mind that anything you can do to raise your credit score will also positively affect your auto insurance score.
How to Improve Your Auto Insurance Score
- Pay off debt.
- Keep your credit accounts open, even if you aren't using them.
- Automate your payments to avoid forgetting them.
- Keep your credit utilization...
2
What's the difference between insurance scores and credit scores?
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Lilah Butler, Car Insurance Writer
@lilah_c
The difference between your insurance score and your credit score largely comes from the way the information is assessed. A credit score is used by lenders to assess your position as a borrower, while your insurance score is used to determine how likely you are to file a claim. Your insurance company will also supplement your insurance score with details such as your driving record and claims history to determine your risk level when calculating...
1
What is a good auto insurance score?
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WalletHub
@WalletHub
A good auto insurance score is roughly 700 to 900 or higher, depending on the insurance score provider. FICO considers 700 to be a good auto insurance score, but LexisNexis and TransUnion both start their good-score ranges at 776.
Good Auto Insurance Scores by Provider
| Insurance Score Provider | Good Score Range | Poor Score Range |
| FICO | 700-900 | 250-500 |
| LexisNexis | 776-997 | 200-500 |
...
1
What are some good no-credit-check car insurance companies?
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WalletHub
@WalletHub
No-credit-check car insurance companies are rare, since it's estimated that 95% of insurers use credit to calculate premiums where allowed by state law. Examples of car insurance companies that don't check credit include Dillo Insurance in Texas, Equity Insurance in Oklahoma, and Cure Auto Insurance in Pennsylvania and New Jersey. No-credit-check car insurance companies tend to be relatively small and operate at the regional or local level. Because their customer base is mostly high-risk drivers,...
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Does getting insurance quotes affect credit?
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Anamarie Waite, Car Insurance Writer
@anamarie.waite
Getting insurance quotes does not affect your credit score, so you can comparison shop for car insurance coverage as much as you want. Your credit won't be affected, no matter how many quotes you get. Car insurance companies do check credit reports to give quotes, but they use a “soft pull.” Unlike a hard inquiry, soft pulls do not affect your credit score. Lenders checking your credit history after the fact won't even be able...
What is a good TransUnion auto insurance score?
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WalletHub
@WalletHub
A good TransUnion auto insurance score is in the high 700s or above. TransUnion notes on its website that 770 is generally considered a good insurance score, but there are several different types of insurance scores with different score ranges. TransUnion auto insurance scores, also known as TransUnion TrueRisk scores or TransUnion Insurance Risk scores, range from 150 to 950, unlike typical credit scores.
On the other hand, LexisNexis insurance scores range from 200 to...
What is a good score for State Farm Drive Safe and Save?
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Michael R Patton, Writer
@MichaelRPatton
State Farm doesn't specify a "good score" for Drive Safe & Save, but its app shows a 0%-100% safety score range, with 100% being ideal. There are a few key factors that can impact your safety score, including your braking, speed, mileage, and phone usage.
You can find your safety score on the Drive Safe & Save mobile app. Your safety score is based on the past 14 days of trips, and you can see your ratings...
Do car insurance companies check credit?
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WalletHub
@WalletHub
Yes, car insurance companies check credit, except in Hawaii, California, Massachusetts, Michigan, and Washington where it is illegal. Getting car insurance quotes and buying a policy will not hurt your credit, though, because insurers use what's called a soft pull, rather than a hard inquiry. The credit-scoring company FICO estimates that 95% of car insurance companies use insurance scores as a factor in determining prices.
Insurance scores are different than credit scores, but they rely on...
Does credit affect car insurance?
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WalletHub
@WalletHub
Yes, credit affects car insurance premiums in every state except for California, Hawaii, and Massachusetts. Car insurance companies use credit score as one factor in determining premiums because credit history correlates with a driver's likelihood of filing a claim. Insurance companies do not use a consumer's standard credit score, though. Instead, they look at a driver's auto insurance score, which is based on the same information as a credit score, like payment history and debt.
Roughly...
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As an expert in the field of auto insurance and credit-based insurance scores, I bring a wealth of knowledge to shed light on the concepts discussed in the article by Adam McCann, WalletHub Financial Writer, dated January 10, 2023.
Understanding Auto Insurance Scores:
Auto insurance scores are ratings derived from credit reports, helping insurers assess the likelihood of drivers filing claims and the associated risk. Lower scores indicate higher risk, leading to higher premiums.
Key Concepts:
-
Source of Auto Insurance Scores:
- Insurance scores are provided by companies such as Fair Isaac Corporation (FICO), LexisNexis, and TransUnion.
- FICO and LexisNexis have score ranges of 250-900 and 200-997, respectively.
-
Credit History vs. Driving History:
- Auto insurance scores are based on credit history, not driving history.
- The scoring factors resemble those of traditional credit scores but are tailored to the insurance industry.
-
Good Auto Insurance Score Range:
- A good score is generally considered to be 700 or higher, but this varies by provider.
- Different providers may have slightly different score ranges for what is considered "good."
Comparing Auto Insurance Scores:
The table compares common auto insurance scores from FICO, LexisNexis, and TransUnion, including score ranges and the credit report used by each.
Factors Influencing Auto Insurance Scores:
FICO uses various factors from credit reports to calculate insurance scores, with payment history carrying the most significant weight at 40%. Other factors include amounts owed, length of credit history, new credit, and types of credit used.
Obtaining Your Auto Insurance Score:
- Unlike credit reports, consumers aren't entitled to free auto insurance scores.
- LexisNexis provides auto insurance scores, and the number can be obtained by calling 866-897-8126.
How to Improve Auto Insurance Scores:
-
Improve Your Credit Score:
- A higher credit score often correlates with a higher auto insurance score.
- Managing credit responsibly, paying bills on time, and reducing debt can positively impact scores.
-
Financial Responsibility:
- Responsible financial behavior, such as timely bill payments and low credit utilization, contributes to a positive auto insurance score.
-
Safe Driving Habits:
- While not directly impacting the score, safe driving practices can influence insurance premiums.
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Credit History Management:
- Regularly checking credit reports for errors and staying informed about your credit history can contribute to a better auto insurance score.
State-Specific Regulations:
- California, Hawaii, and Massachusetts have banned the use of credit in calculating auto insurance rates.
Additional Insights:
- The article addresses common questions through an FAQ section, providing clarity on topics such as insurance scores, improving scores, and the difference between insurance and credit scores.
In summary, auto insurance scores play a crucial role in determining insurance premiums, and understanding how they are calculated can empower individuals to take steps to improve their scores and potentially lower their insurance costs.
