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Auto Insurance

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MrTom
Frequent Contributor

Auto Insurance

As many may be aware; your credit score effects your insurance rates.

 

Just curious what kind of score is needed to get the best insurance rates?

 

When I received my renewal notice, I about choked on my own breath when I seen my renewal amount.  Out raged, I called and wondered **bleep** is going on.  I have a clean record; no at fault accidents, and a excellent credit score; but yet I'm being charged penality rates.  So I asked if that was right.

They pulled my report (Soft pull) and said I quilified for a new Rate plan.  The new premium, half then what the renewal was for.  Which got me thinking, they had to of made it harder to get a prefered rate now.  Anyone know any more on what scores gives you prefered rates?



Starting Score: May 23, 2016 EQ 537 TU 518 EX 548
Recent Scores: EQ 839 TU 824 EX 821
Goal Score: 840
Current Vantage 3.0: 808
Mortgage Scores August 18 2017: EQ5 684 TU4 692 EX2 690
Message 1 of 11
10 REPLIES 10
coldfusion
Community Leader
Mega Contributor

Re: Auto Insurance

I don't know, but I also live in one of the states that prohibits the use of credit information including insurance scores when setting rates or underwriting auto insurance.

 

https://www.experian.com/blogs/ask-experian/which-states-prohibit-or-restrict-the-use-of-credit-base...

(2/2024)
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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 2 of 11
Cowboys4Life
Frequent Contributor

Re: Auto Insurance

I don't think it is even credit score as much anymore.  Most of the major carriers have been hit with way higher costs in personal injury and repairs including parts.  That cost is passed on to all the consumers because when I got my stomach churning renewal price I had the same discussion with my carrier.  Those were the excuse(s) I was given and I protested on why I should be paying an egregious increase when I have a clean driving record for over 25 years and no claims history and they have no explanation other than everyone pays.  It is enough that driving without insurance is starting to look appealing.

Message 3 of 11
pizzadude
Credit Mentor

Re: Auto Insurance

Agree that I don't really think that having a good / excellent credit score will really be much of a positive factor towards lower rates.

 

A low credit score is much more likely to be a negative factor which would result in higher rates in addition to the across the board increases described above that everyone is seeing these days. 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 11
FireMedic1
Community Leader
Mega Contributor

Re: Auto Insurance

Does your state have courses you can take like here in FL. Save for 3 yrs depending on company can be up to 10%.

https://www.stateofflorida.com/mature-driver-course/ 


Message 5 of 11
SlideOrInsert
Regular Contributor

Re: Auto Insurance

last Jan my auto insurer tried to raise my 6mo premium by ~$65 (~13%) by resetting my relatively low-ish mileage to 12k per year. it is low-ish, but accurate because I have a work vehicle I bring home everyday. filled out a form and emailed it and it was reduced.

 

this Jul, I get a new premium notice, funny enough again raised by ~$65. I call Geico again, like foh because I have a clean record, 10yr old Camry, excellent credit. and this time I am told my mileage has not changed, just that rates went up because "California" (where credit doesn't matter anyway).

 

and this is supposedly a group discounted rate because when I joined NFCU a few years ago there was some affiliation so I switched over.

 

I was pissed, but got 3-4 other rates from major insurers that came back even higher than Geico.

 

can't win. `\o/`

 

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Message 6 of 11
Thomas_Thumb
Senior Contributor

Re: Auto Insurance


@MrTom wrote:

As many may be aware; your credit score effects your insurance rates.

 

Just curious what kind of score is needed to get the best insurance rates?

 

When I received my renewal notice, I about choked on my own breath when I seen my renewal amount.  Out raged, I called and wondered **bleep** is going on.  I have a clean record; no at fault accidents, and a excellent credit score; but yet I'm being charged penality rates.  So I asked if that was right.

They pulled my report (Soft pull) and said I quilified for a new Rate plan.  The new premium, half then what the renewal was for.  Which got me thinking, they had to of made it harder to get a prefered rate now.  Anyone know any more on what scores gives you prefered rates?


Insurers use Credit Based Insurance Scores (CBIS) - not Fico or Vantage credit scores. The two types of scores use different criteria for scoring and they don't correlate.

 

There are some threads on the forums that discuss CBIS. Do a search if you want to read about these alternate scoring models.

 

BTW- insurance premiums for those with a high cbis can be less than half that of those with a low cbis - assuming the same driving record and driver age. Unfortunately, CBIS are very difficult if not impossible to obtain these days.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 7 of 11
Zoostation1
Established Contributor

Re: Auto Insurance

@Thomas_Thumb"Unfortunately, CBIS are very difficult if not impossible to obtain these days."  - This is a serious problem IMO.  I firmly believe if CBIS scores are going to be used, consumers should have a reasonable way to access them.  Also, while I've not been able to find the post again that had a link to a CBIS document (hoping you may know).  I remember reading the CBIS document that showed many of the category breakdowns and I remember seeing average credit limit per card being a factor, having a store card was a negative, large numbers of credit cards were also a negative IIRC.  My memory is a bit fuzzy on this but it seemed like it wanted people to have only a few credit cards, but with relatively large limits and long history among other oddities.

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Message 8 of 11
FireMedic1
Community Leader
Mega Contributor

Re: Auto Insurance

@Thomas_Thumbthis link goes to where you had a chart on reason codes in the links provided

https://ficoforums.myfico.com/t5/General-Credit-Topics/Insurance-scoring/td-p/6652384 


Message 9 of 11
Junejer
Moderator Emeritus

Re: Auto Insurance

This insurance game is baffling to me. We were with Progressive and got the renewal with a 10% penalty. I called and was told it was because it is getting more expensive to do business in my state. Okay, Flo, goodbye. Had a bundle with homeowners. Did online research and found even more disturbing results. I applied with me as primary and DW as secondary with GEICO and found that the rate would drop by about 10%. Decided to list DW as primary and me as secondary and received a 34% price difference. This is crazy. I haven't had a ticket in I don't know when (15 years?). My wife had a ticket about four years ago. Homeowner's insurance was equally as disturbing. We have never had a claim and her rate was 80% of what I was quoted. Obviously, I listed her as primary, but I am baffled by this.







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