Insurance Scores

[MrTom]

You got to be f*&^*%! joking me.

I got my insurance score up a good 200+ points.  Dropped all collections, low cc utl, asked for a re-rate.  Received a letter saying my credit portion changed.

Today I get my home owners renewell notice, and it went down3 dollars for the entire year.....

Anyonw w/ experience on re-rates?

[medicgrrl]

It may have gone down more. I would call your agent and ask if they increased rates. Without your score improvement, you may have been looking at an increase with your renewal this year.

Great job on improving your insurance scores!

[Anonymous]

Consider shopping all your insurances on a regular basis. All sorts of factors can cause insurance rates to go up. The old adage that a company needs to beef up one of their insurance lines so they "buy the business" for a period of time. Then we have the tornado and hurricane effects on some insurance companies that need to increase rates to spread the loss. Not to forget the effects of credit (which you are working on). Shopping the insurances is painless and if it doesn't yield sufficient savings for you don't switch. In my world it has been laziness on my part that I let my rates go up due to my belief that loyalty was the answer then the agent informed me not all companies reward loyalty. Hmm ... ok, time for me to shop.

[Thomas_Thumb]

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@MrTom wrote:

You got to be f*&^*%! joking me.

I got my insurance score up a good 200+ points.  Dropped all collections, low cc utl, asked for a re-rate.  Received a letter saying my credit portion changed.

Today I get my home owners renewell notice, and it went down3 dollars for the entire year.....

Anyonw w/ experience on re-rates?

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Impact of CBIS on insurance premiums varies greatly depending on the insurance company. For some, CBIS has no affect while for others it can be rather significant. Most studies focus on the strong correlation between Auto insurance payouts and credit based insurance scores (CBIS). I have not seen any published studies on payouts for home insurance relative to CBIS. Perhaps the correlation is not so strong and therefore has less influence on premiums. It would be interesting to know if your Auto premium receives more favorable treatment.

Not sure where your CBIS came from - direct from your insurance company or from a 3rd party such as LexisNexis (LN) or TransUnion (TU)? Both LN and TU provide Auto and Home (or property) CBIS. Typically those scores are not the same. For example, LN Auto score could be 100 points higher than LN Home score.

Provided below is a category rating table from LN. As you can see there is a broad band of scores associated with each category. As you can see "good" spans 221 points.

Insurance companies that use LN CBIS may further sub divide when assigning premiums - or not. See below

And here is a table from one study showing influence of CBIS to Auto insurance premiums