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Auto Insurance Score

I was looking at credit karma 3 months ago and I saw auto listed, ( which I had never seen on there before) and it takes you to an auto insurance score. What affects your auto score, I have never heard of that until very recently, and now that my insurance quote has gone down I am curious? I saw an increase in my score, (maybe 5 weeks ago) and I just got my insurance quote for my renewal which has gone down $78. Obviously my quote was much lower because of my score increase, but I am not really sure how to increase it further, which I would like to do. It has never gone down, from my knowledge, although I did just recently find out about that score, so maybe it has gone and I just never noticed. (I hope this is the right place to post this)

Message 1 of 13
12 REPLIES 12
Established Contributor

Re: Auto Insurance Score

I am curious as well.
Starting Score: EX 641 TU 631 EQ 669
Current Score: EX 714 TU 718 EQ 713 (EQ9 735)
Goal Scores: 750


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Message 2 of 13
Frequent Contributor

Re: Auto Insurance Score

I hadn't noticed it either until a few months ago.  I read up on it and contacted my Insurance company and inquired and they stated they could do a review.  Rates could go up or down.  My rates have been up and down but only by a few dollars.  $10 at the most.  I never inquired about the decrease but have inquire about the increase and was told it's due to market changes.  

 

But I will be asking for a review because it would be impossible for that score not to be better than it ever was so I'll see.

 

I'd be curious to find out which CB they would use since CK only provides TU's auto score.  No clue what the other bureaus auto score is.



FICO 8 as of 08/02/19
FICO 9 as of 08/02/19
AoOA - 23Y5M | AoYA - 1Y | AAoA - 12Y
1 30 day late on EX (12/2012)
Open: 8 CC | 1 RC | 1 PLOC | 1 MTG loan | 1 Auto loan
Closed: 1 MTG loan | 1 Auto loan | 2 RC
Message 3 of 13
Contributor

Re: Auto Insurance Score


@Trudy wrote:

I hadn't noticed it either until a few months ago.  I read up on it and contacted my Insurance company and inquired and they stated they could do a review.  Rates could go up or down.  My rates have been up and down but only by a few dollars.  $10 at the most.  I never inquired about the decrease but have inquire about the increase and was told it's due to market changes.  

 

But I will be asking for a review because it would be impossible for that score not to be better than it ever was so I'll see.

 

I'd be curious to find out which CB they would use since CK only provides TU's auto score.  No clue what the other bureaus auto score is.


I would like to know the other ones as well, I hope someone knows something about this score, I really want to know what effects this score. What would cause you to get a decrease or an increase. Mine went up 80 points when I noticed it on credit karma (they sent me alert about it in my email) and it recently went up a very small amount again. I also wonder if there is a separate auto insurance score for fico and vantage score. I have never actually gotten an increase in my insurance cost though (I have a flawless driving record) so I was shocked to even see a decrease because I am not even paying that much already, let alone an almost $80 decrease. It could just be my insurance though I guess, I keep getting quotes from all state, and progressive (I used to be with both of them) however they quote a much higher amount then I get with geico.

Message 4 of 13
Super Contributor

Re: Auto Insurance Score

These scores are known in the trade as CBIS: Credit Based Insurance Scores.

 

There are two main CBIS.  One is made by LexisNexis and is drawn on Equifax data.  The other is not quite as widely used; it is made by TransUnion and is drawn on TU data, and is available for free through Credit Karma.

 

CBI scores are like FICO scores in a number of ways.  One important way is that the score is based purely on the credit data from one of the three big bureaus.  Thus, for example, the LexisNexis CBIS does not draw on LN's driver history data, since those data are not part of EQ.

 

Other similarities between FICO and CBI scores:

      * They are not influenced by zip code, city, or state.  Nor are they influenced by gender, race, religion, age, educational background, etc.

      * They are not influenced by the color, make, or model of the car you drive.

      * They are strongly influenced by the traditional "derogs": Late payments, collections, chargeoffs, etc.

      * They are strongly influenced by CC utilization.

 

Scoring factors shared but upon which FICO and CBI scores place different levels of weight:

      * New credit.  Inquiries and new accounts hurt you more in CBI scores and longer.  (E.g. inquiries affect you for 24 months rather than 12 months.)

      * Too many accounts.  This has very little effect in FICO (you can probably have 15 accounts with no penalty and 50 accounts with little penalty).  But in CBI scores you begin to take a penalty at a much lower number -- maybe 6-7?

      * Average Age of Accounts and Age of Oldest Account.

 

Scoring factors not present in FICO but which are present in CBI models:

      * The mere presence of store cards hurts you.

      * The mere presence of "auto-related" accounts (Firestone, Pep Boys, etc.) hurts you.

      * Average Credit Limit (as a dollar value).  The last I looked, there was no CBIS penalty if your ACL was above $10,600.  Less than that and you begin to take stiffer and stiffer penalties.

      * Total dollar value of installment debt affects you as does total dollar value of revolving debt. 

      * If your oldest account is a loan, there's a penalty for that.  CBIS like it better when your oldest account is a credit card.  The penalty gets stiffer if the loan is much older than your oldest credit card.  (Yeah, this scoring factor is a bit strange.)

 

Note that nearly all insurers who use CBI scores couple them with additional considerations: your age, the color, make and model of your car, your zip code, your driving history, etc.  Those factors are not present in the CBIS itself, however.

 

Finally note that a CBIS is used to assist the insurer in estimating the probability that you will file a claim.  That's not the same thing as the probability that you will get in a wreck, get a speeding ticket, or otherwise engage in dangerous driving.

Message 5 of 13
Super Contributor

Re: Auto Insurance Score

Note also that an 810 FICO 8 score is amazing, whereas an 810 CBIS is already looking pretty lame, maybe a C minus if you used the grades we all got back in high school.

 

So be careful how you evaluate any CBIS score.

Message 6 of 13
Contributor

Re: Auto Insurance Score


@CreditGuyInDixie wrote:

These scores are known in the trade as CBIS: Credit Based Insurance Scores.

 

There are two main CBIS.  One is made by LexisNexis and is drawn on Equifax data.  The other is not quite as widely used; it is made by TransUnion and is drawn on TU data, and is available for free through Credit Karma.

 

CBI scores are like FICO scores in a number of ways.  One important way is that the score is based purely on the credit data from one of the three big bureaus.  Thus, for example, the LexisNexis CBIS does not draw on LN's driver history data, since those data are not part of EQ.

 

Other similarities between FICO and CBI scores:

      * They are not influenced by zip code, city, or state.  Nor are they influenced by gender, race, religion, age, educational background, etc.

      * They are not influenced by the color, make, or model of the car you drive.

      * They are strongly influenced by the traditional "derogs": Late payments, collections, chargeoffs, etc.

      * They are strongly influenced by CC utilization.

 

Scoring factors shared but upon which FICO and CBI scores place different levels of weight:

      * New credit.  Inquiries and new accounts hurt you more in CBI scores and longer.  (E.g. inquiries affect you for 24 months rather than 12 months.)

      * Too many accounts.  This has very little effect in FICO (you can probably have 15 accounts with no penalty and 50 accounts with little penalty).  But in CBI scores you begin to take a penalty at a much lower number -- maybe 6-7?

      * Average Age of Accounts and Age of Oldest Account.

 

Scoring factors not present in FICO but which are present in CBI models:

      * The mere presence of store cards hurts you.

      * The mere presence of "auto-related" accounts (Firestone, Pep Boys, etc.) hurts you.

      * Average Credit Limit (as a dollar value).  The last I looked, there was no CBIS penalty if your ACL was above $10,600.  Less than that and you begin to take stiffer and stiffer penalties.

      * Total dollar value of installment debt affects you as does total dollar value of revolving debt. 

      * If your oldest account is a loan, there's a penalty for that.  CBIS like it better when your oldest account is a credit card.  The penalty gets stiffer if the loan is much older than your oldest credit card.  (Yeah, this scoring factor is a bit strange.)

 

Note that nearly all insurers who use CBI scores couple them with additional considerations: your age, the color, make and model of your car, your zip code, your driving history, etc.  Those factors are not present in the CBIS itself, however.

 

Finally note that a CBIS is used to assist the insurer in estimating the probability that you will file a claim.  That's not the same thing as the probability that you will get in a wreck, get a speeding ticket, or otherwise engage in dangerous driving.


Very thorough response, and answered any question I could possibly have.The only other question I could possibly have is how do you know which one your insurance company uses? Do I just have to call them or is there a list of that somewhere?

Message 7 of 13
Contributor

Re: Auto Insurance Score


@CreditGuyInDixie wrote:

Note also that an 810 FICO 8 score is amazing, whereas an 810 CBIS is already looking pretty lame, maybe a C minus if you used the grades we all got back in high school.

 

So be careful how you evaluate any CBIS score.


Here I was thinking my 855 (the one listed on credit karma was good), so what would be considered good? It is out of 950, I can't imagine mine would go up at all anymore. Several factors are limiting me, I have medical collections, I have a lot of accounts, and my oldest account is a loan. In addition to my oldest account being a loan it is WAY greater then my oldest credit card. So I am guessing 855 is where I am stuck for a while.

Message 8 of 13
Frequent Contributor

Re: Auto Insurance Score


@CreditGuyInDixie wrote:

Note also that an 810 FICO 8 score is amazing, whereas an 810 CBIS is already looking pretty lame, maybe a C minus if you used the grades we all got back in high school.

 

So be careful how you evaluate any CBIS score.


I'm inclined to believe you about that 810 CBIS score, since mine is already 820 with only 1yr 4mos of credit history and only 4 months of revolving credit history.

 

But TransUnion has a page about insurance scores where they say a 770 or above is good. This page is dated 8/31/2015, so maybe you have more recent information?

 

How Your Credit History Can Impact Your Auto Insurance Score

"Typical insurance scores range from 200 to 997; a good score is usually around 770 or higher."

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.
Message 9 of 13
Frequent Contributor

Re: Auto Insurance Score

Just want to add this to the topic in addition to all the great detail CGID provided.  It is provided by CK after a few clicks.  To support some of the points made by CGID my score was 863 in 5/2018 before a MTG re-fi and new CC hit my report in August and re-fi inquiry hit in June.  Afterwards it dropped to 832 out of 950 and is currently 842.  AoOA is 23y, 1m, AAoA 11y 8m and AoYa 8m.

 

Insurance Scores.PNG

 

 



FICO 8 as of 08/02/19
FICO 9 as of 08/02/19
AoOA - 23Y5M | AoYA - 1Y | AAoA - 12Y
1 30 day late on EX (12/2012)
Open: 8 CC | 1 RC | 1 PLOC | 1 MTG loan | 1 Auto loan
Closed: 1 MTG loan | 1 Auto loan | 2 RC
Message 10 of 13
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