Everything You Need to Know about Auto Insurance Scores
You probably already know what your credit score is and how it affects your ability to get loans, the rates that you pay, and the financial options that you have. Your auto insurance score is similar. This score affects what premium rating you qualify for and how high your monthly auto insurance premium will be.
Like your credit score, your auto insurance score is a measurement of your riskiness. If you are shopping for auto insurance, knowing your insurance score and what you can do to improve it can help you make wise choices.
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Auto Insurance Score vs. Credit Score: What Is the Difference?
Both your auto insurance score and your credit score are measurements of how risky you are, whether to lend money to or to insure. Their main differences lie in who uses them and how they are calculated.
Credit scores are generated by three credit bureaus. These bureaus maintain files on borrowers that include information such as payment history, how much money is owed, the length of credit history and the types of credit used. The better the score, the more financial opportunities you have.
Auto insurance scores, on the other hand, are metrics used by auto insurance companies that determine how much of a risk you are to insure. In Nevada, auto insurance scores may be based in part on an individual’s credit score, along with other factors that assess how likely a policyholder is to file a claim.
The Factors that Affect Your Auto Insurance Score
Unfortunately, the algorithms that generate your auto insurance score are proprietary, meaning very few people working for the insurance company knows this information. However, we do know that auto insurers use information from two databases, including the Automated Property Loss Underwriting System and the Comprehensive Loss Underwriting Exchange.
Your auto insurance score is likely based on factors such as:
- Your age
- How long you have had a driver’s license
- Marital status
- Whether you buy or rent your home
- How many auto insurance claims you have filed
- Your education level
- Your gender
- The vehicle you drive
What Is Your Score?
Auto insurance scores typically range between 200 and 997. If your score is 770 or higher, you enjoy lower auto insurance rates. If your score is below 500, you have limited options and pay higher monthly premiums. Keeping continuous liability insurance helps. Avoid breaks in your coverage, meaning, don’t go 1 day without coverage.
While your score is not something that you have access to, you probably already have a general idea of where you fall on that range. If you have rarely, if ever, filed a claim and you have a good credit score, then your auto insurance score is probably high. On the other hand, if your credit score is low and you have filed multiple claims, your auto insurance score is likely on the lower end of the spectrum.
How Nevada Insurance Enrollment Can Help You Get Affordable Car Insurance – No Matter Your Score
Nevada Insurance Enrollment can help you understand your auto insurance options and compare policies and prices. Whether your auto insurance score is less than stellar, or totally perfect, our licensed agents can assist you, in a kind and professional manner.
Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.