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.
Comparing Common Auto Insurance Scores
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. Plus, car insurance companies use other information, like claims history and driving records, to supplement insurance scores when evaluating drivers.
That’s what the major auto insurance scores have in common. There are differences, though, including what score range they use and where their credit data comes from. You can see how the most popular types compare in the table below.
Three Major Auto Insurance Scores
|Provider||Auto Insurance Score||Score Range||Credit Report Used||Availability|
|Fair Isaac Corporation (FICO)||FICO Credit-Based Insurance Score||250-900||TransUnion||Not available to consumers|
|LexisNexis||LexisNexisAttract Auto Insurance Score||200-997||Equifax||Available to consumers by calling LexisNexis|
|TransUnion||TransUnion True Risk Score||150-950||TransUnion||Yes (contact bureau for more information)|
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. The other two major companies do not provide scores to consumers. But bear in mind that if you call LexisNexis without a reference number from your insurance company, it will be considered a hard inquiry and your credit score will be negatively affected.
However, 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|
|TransUnion||Does not specify, but says that 776 is generally good||150-500|
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. And vice versa. 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 you more than $6,000 in interest on a five-year car loan, compared to fair credit.
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 out WalletHub’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.
By joining WalletHub for 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.