November 25, 2008


A bright financial future is predicated upon making good decisions today. It is well documented the significant role that credit plays in that financial future: lending decisions, rates/fees offered on those loans, employment, and insurance ... The belief is that your ability to manage credit can be used to predict future financial behavior. It has been known for quite some time that insurance companies have used credit history data to aid in predicting insurance risk. It has only been recently 'shared' how that information specifically is used to determine if you qualify for coverage, and at what rate ...

"Your insurance score is a snapshot of your insurance risk at a particular point in time. It is a number based on the information in your credit report that shows whether you’re more or less likely to have claims in the near future that will result in losses for the insurance company. As with all Fair Isaac scores, the higher your score, the less risk you represent." The insurance score that most companies use is created by Fair Isaac and is referred to by different names at the different credit reporting agencies — InScore at Equifax, the Experian/Fair Isaac Insurance Score at Experian, and the Fair Isaac Insurance Risk Score at TransUnion.

How is Your Insurance Score Created?
-- 40% - Previous Credit Performance
-- 30% - Current Level of Indebtedness
-- 15% - Length of Credit History
-- 10% - New Credit/ Pursuit of New Credit
-- 5% - Types of Credit Used

- Get the facts on credit-based insurance scoring.
- Improving your insurance score.
- Insurance scoring facts & fallacies.
- Obtain insurance underwriting history - free.
- Property and auto claims history - free CLUE Report.
- What is not in your insurance score?