Understanding Auto Insurance Scores: A Guide To Finding Yours

An auto insurance score is a number that predicts the likelihood of you filing a claim and the cost of that claim. It is calculated from your credit history and is used to determine your insurance rate. While it is not the same as a credit score, it is influenced by similar factors such as payment history, outstanding debt, length of credit history, pursuit of new credit, and credit utilization ratio. You can find out your auto insurance score by requesting it from LexisNexis or contacting your insurance company directly. Improving your credit score and demonstrating financial responsibility can help enhance your auto insurance score over time.

Request your score from LexisNexis or your insurance company

To request your auto insurance score from LexisNexis, you can go to the company's website, call 1-866-897-8126, or mail a printable request form. LexisNexis Risk Solutions is considered a Consumer Reporting Agency as defined by the FCRA (Federal Credit Reporting Act) and delivers credit reports and insurance scores to the insurance industry. You will need to provide your first and last name, address, date of birth, and either your SSN or driver's license number and state to request your LexisNexis report.

Everyone is entitled to one free copy of their LexisNexis report each year, thanks to the FCRA and the FACT Act (Fair and Accurate Credit Transactions Act). LexisNexis representatives state that consumers do not need to pay for additional copies of their own report. Requesting a LexisNexis report online is the easiest option for most people. However, if you prefer a hard copy, you can send the printable request form to the following address:

> LexisNexis Risk Solutions Consumer Center

> Atlanta, GA 30348-5108

LexisNexis is a consumer reporting agency that provides information about individuals to various organizations, including banks, insurance companies, and governments. When you request a report from LexisNexis, you will receive a Consumer Disclosure Report, which includes your C.L.U.E. report, real estate transaction and ownership data, records of liens, judgments, and bankruptcy, and public records information. A consumer's C.L.U.E. report contains up to seven years of information on their insurance claims history, which insurance companies use to determine how much of a risk the individual presents.

LexisNexis Risk Solutions also provides a dedicated process for consumers to obtain a copy of their consumer report information from the LexisNexis Risk Solutions Consumer Portal. If you have been adversely affected by information contained in a consumer report, you may request your file from the consumer reporting agency that provided it. LexisNexis will provide your file at no cost to you at any time you make the request.

You can also request your auto insurance score directly from your insurance company. If you have been adversely affected by your credit information, the Consumer Reporting Agency that provided it shall, upon your request, clearly and accurately disclose all information in your file at the time of your request. However, it is important to note that the FCRA does not require a Consumer Reporting Agency to disclose information concerning insurance scores to the consumer.

Your auto insurance score may be calculated by your insurance company using their own proprietary methodology or by a third-party vendor. Some third-party vendors used by insurance companies include Fair Isaac Corporation (FICO), LexisNexis (combined with ChoicePoint), and TransUnion. These companies use different scales or ranges for their insurance scores, and what is considered a good score may vary. Therefore, it is recommended to get multiple quotes when shopping around for an insurance policy.

Your score is based on your credit history

Your auto insurance score is based on your credit history, so it's also referred to as a "credit-based insurance score". This score is a number that's used to predict your odds of filing an insurance claim and the cost of that claim. It's calculated mostly from your credit history.

While your credit score predicts your ability to repay debt, a credit-based insurance score uses your credit history to predict the likelihood of filing a claim in the future and the cost of that claim. A better score may result in a lower insurance rate.

Each insurer has its own way of calculating and incorporating credit-based insurance scores to set rates. Your credit-based insurance score is calculated from the information in your credit reports. So, your credit information could potentially impact your auto insurance rates.

Some of the factors that go into calculating your credit-based insurance score include:

• Outstanding debt
• Length of credit history
• Credit mix
• Payment history
• Pursuit of new credit

While you can't directly find your auto insurance score, you can request it from LexisNexis or contact your insurance company directly. You can also check your latest credit score to get an idea of what your auto insurance score may be.

A good score may result in a lower insurance rate

A good auto insurance score may result in a lower insurance rate. This is because a good score indicates that you are less likely to file a claim, which could result in a loss for your insurance company. A good score also suggests that you are a safe driver.

A good auto insurance score is typically considered to be anything above 700, but this can vary depending on the insurance score provider and car insurance company. For example, FICO considers 700 to be a good score, while LexisNexis and TransUnion start their good-score ranges at 776.

Your auto insurance score is based on your credit history and is used to predict the likelihood of you filing a claim. It is calculated from information on your credit reports, such as payment history, outstanding debt, length of credit history, pursuit of new credit, and mix of credit experience.

You can improve your auto insurance score by checking your credit reports for errors, managing your credit responsibly, and building a long credit history. Making all your debt payments on time, keeping your credit utilization low, and having numerous accounts in good standing can also help improve your score.

Your score is not the same as your credit score

Your auto insurance score is calculated based on the information in your credit report. However, it is not the same as your credit score. While both are calculated using information from the same source, they are not technically related.

An auto insurance score is a number based on your credit history that is used to predict your likelihood of filing an insurance claim and costing the insurer money. It is a credit-based insurance score, calculated mostly from your credit history, and used to predict your odds of filing a claim. A better score may result in a lower insurance rate.

Your credit score, on the other hand, predicts your ability to repay debt. It is a three-digit number based on information from your credit report, and it predicts how likely you are to pay back a loan on time.

While there is a correlation between your credit score and auto insurance rates, they are calculated differently and serve distinct purposes.

You can improve your score by paying off liabilities on time

Auto insurance scores are used by insurance companies to predict the likelihood of future claim filings and determine if an applicant should be granted an insurance policy and at what rate. These scores are calculated from information on your credit reports, including your credit history, and are used to set your insurance rate.

You can improve your auto insurance score by paying off your liabilities on time. This includes paying off your debt on or before the due date, as well as keeping your oldest credit accounts open to demonstrate a long-established track record. Making on-time payments signals to insurance companies that you are reliable with your finances and helps to avoid letting interest compound month after month. It is also important to keep in mind that your credit score and auto insurance score are connected. Therefore, by paying off your liabilities on time, you can improve both your credit score and your auto insurance score.

In addition to paying off your liabilities on time, there are several other ways to improve your auto insurance score. Firstly, it is recommended to decrease your credit utilization, which means trying to use less credit relative to the total amount available across all your liabilities. Secondly, diversifying your available credit can also help to improve your score. Paying off different types of credit sources signals to insurers that you are adept at managing different liabilities. However, it is important to proceed with caution as taking out a loan or opening too many accounts at once for the sake of diversifying credit may negatively impact your score by resulting in several credit inquiries. Finally, it is worth noting that only time will mitigate the effects of prior accidents and claim filings on your auto insurance score, so it is important to focus on improving credit-related factors and maintaining a good driving record.

Frequently asked questions