Is a higher insurance score better?

Asked by: Denis Dooley Sr.  |  Last update: August 3, 2025
Score: 4.9/5 (19 votes)

Your home insurance premiums may be directly affected by your insurance score. Insurers use sophisticated models to evaluate a policyholder's financial history and determine risk profiles. Those with higher scores can be rewarded with lower premiums, reflecting the lower projected risk.

Is a high insurance score good?

Insurance scores range between a low of 200 and a high of 997. Insurance scores of 770 or higher are favorable, and scores of 500 or below are poor. Although rare, there are a few people who have perfect insurance scores. Scores are not permanent and can be affected by different factors.

What is a good insurance rating?

Excellent A A- Assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations. Good B+ B++ Assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.

What is the difference between a credit score and an insurance score?

A credit score is based on your ability to repay amounts you have borrowed. An insurance score predicts the likelihood of you becoming involved in a future accident or insurance claim — it is based on information gathered from policyholders with similar credit characteristics who have had previous claims with us.

Does insurance improve credit score?

The short answer is no. There is no direct affect between car insurance and your credit, paying your insurance bill late or not at all could lead to debt collection reports. Debt collection reports do appear on your credit report (often for 7-10 years) and can be read by future lenders.

Insurance Companies to AVOID!

25 related questions found

What's a decent credit score to get a car?

A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.7% or better, or a used-car loan around 9.63% or lower. Superprime: 781-850.

How to increase insurance score?

Tips to improve your insurance score
  1. Pay your bills on time, every time. ...
  2. Limit your credit applications. ...
  3. Minimize your debt. ...
  4. Don't close any existing accounts. ...
  5. Keep variety in your accounts.

Is it better to buy car insurance online or with an agent?

Buying insurance online can often result in lower customer costs due to the elimination of commission fees for the insurance agent. However, buying insurance through an agent can offer a more personalized experience and in-depth policy analysis, leading to finding the most cost-effective coverage options.

Can you be turned down for insurance because of your credit score?

California

Insurance companies in California don't use credit-based scores or your credit history for underwriting or rating auto policies, or setting rates for homeowners insurance. As a result, your credit won't impact your ability to get or renew a policy, or how much you pay in premiums.

How much does car insurance go down after 1 year no claims?

In many cases, your insurance will go down by 5-20% in the first year of no claim, depending on your insurer. After the first year, this discount increases each year, usually by 5%, if you don't make a claim. But it only increases up to a maximum discount, usually 50-60%, and a number of years — usually 5-6 years.

What is the highest insurance rating?

The most well-known insurance specific rating company, the scores provided by AM Best are often considered the yardstick for financial strength in the industry. The highest rating offered is A++ (Superior) while the lowest is a D (Poor).

What is considered good grades for insurance?

In most states, the requirements are that the driver must be under 25 years old and a full-time student in high school, college, or vocational or technical school. The student has to meet one of these grade standards: Rank in the top 20% of the class. Letter grade average of B or better.

Why do I have a low insurance score?

Anything that affects your credit score will likely affect your insurance score, too. Having outstanding debt, making late payments, using too much credit and having recent hard credit checks can all negatively affect your insurance score.

Is B+ a good insurance rating?

B++, B+ Good Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations. B, B- Fair Assigned to companies that have, in our opinion, a fair ability to meet their ongoing insurance obliga- tions.

Does Progressive do a hard credit check?

We do check credit bureau reports; however, we look at many other data points to make a final decision, and we regularly approve customers with less than perfect credit or very little credit history. Progressive Leasing obtains information from credit bureaus.

Is it cheaper to go to an insurance company directly?

The Winner: Agent or Direct

Some companies that don't offer direct buying options may be cheaper for some individuals, while buying direct insurance providers is more affordable for others. The only way to know which option is right is for a customer to compare both options for themselves.

Is car insurance cheaper if you don't use an agent?

Online car insurance policies are generally cheaper than those offered by insurance agents as these don't include commissions and other fees. Most auto insurance companies also offer discounts if you purchase car insurance online.

Is it better to go with a local insurance company?

Tailored Coverage Options

They have the flexibility to offer customized plans that ensure you're neither over-insured nor under-insured. Whether you need additional coverage for a high-value home, a vintage car, or special riders for unique circumstances, a local agent is more likely to offer personalized advice.

What is a good insurance score?

Insurance scores using the LexisNexis Risk Classifier range from 200 to 997. According to the company, a score of 770 or better is considered good and will get you favorable rates. A score of 500 or below is considered poor and could result in higher premiums or being turned down for coverage.

How can I lower my full coverage car insurance?

If you're wondering how to get a lower car insurance rate, use these methods for lowering your premium:
  1. Qualify for insurance discounts. ...
  2. Increase your deductible. ...
  3. Reduce your coverage. ...
  4. Compare rates. ...
  5. Try usage-based insurance. ...
  6. Take a defensive driving course. ...
  7. Get a car that's cheaper to insure.

Does my insurance score affect my credit?

Understand How Credit and Other Factors Determine Your Premiums. In most states, insurers can use your credit-based insurance score to determine your premiums. Your credit-based insurance score is not the same as your regular credit score.

What credit score is needed for a $40,000 auto loan?

There is no minimum credit score required to buy a car, but most lenders have minimum requirements for financing. Most borrowers need a FICO score of at least 600 to get a competitive rate on an auto loan.

Is a 900 credit score possible?

What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.