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Insurance score explained simply: it is a rating built from your credit report that auto insurers use to predict claims. It is not the same as the credit score a lender checks. However, both come from the same credit data.
Most drivers never see their insurance score, yet it can change a premium by hundreds of dollars a year. According to FICO, about 95% of auto insurers use credit-based insurance scores in states that allow them. With the insurance score explained clearly, you can see why two drivers with clean records pay very different rates. This guide covers how the two scores differ and what you can do about it.
Insurance Score Explained: How It Differs From a Credit Score
A credit score predicts how likely you are to repay a loan. Lenders use it for mortgages, car loans and credit cards. An insurance score has a different job. It predicts how likely you are to file an insurance claim, and how costly that claim may be.
Both scores pull from the same three credit bureaus: Equifax, Experian and TransUnion. However, they weigh the data differently. For example, a FICO credit score usually runs from 300 to 850. A FICO insurance score can run from about 250 to 900, depending on the model. LexisNexis Attract, another common model, uses a range of roughly 200 to 997. In most cases, a higher number is better on both scales.
Insurers say the link between credit and claims is real. A 2007 Federal Trade Commission report found that credit-based insurance scores do predict claims risk for auto policies. As a result, insurers in most states treat the score as a major rating factor. That is why the insurance score explained in plain terms matters to your budget.
What Goes Into Each Score
The two scores use similar categories. However, the weights are not the same. FICO publishes general weightings for both models. The table below compares them.
| Factor | FICO Credit Score | FICO Insurance Score |
|---|---|---|
| Payment history | 35% | About 40% |
| Amounts owed / outstanding debt | 30% | About 30% |
| Length of credit history | 15% | About 15% |
| New credit / pursuit of new credit | 10% | About 10% |
| Credit mix | 10% | About 5% |
Payment history carries more weight in the insurance version. As a result, late payments can hurt your insurance score more than your credit score. Collections, charge-offs and bankruptcies also weigh heavily.
Some data is never used in either score. This includes income, race, religion, gender, marital status, national origin and address. The NAIC notes that insurance scores should not use these personal traits. Typically, medical debt also gets limited weight under newer scoring rules.
Insurers also blend the insurance score with other factors. These include your driving record, claims history, vehicle, ZIP code and annual mileage. For example, a driver with an at-fault accident and excellent credit may still pay more than a clean driver with fair credit. Having your insurance score explained as one piece of the puzzle helps keep it in perspective.
How Much an Insurance Score Can Change Your Premium
The cost gap can be large. Rate studies from industry analysts have found that drivers with poor credit often pay close to double what drivers with excellent credit pay for full coverage. In some states, the difference tops $1,500 to $2,000 per year. Typically, the jump from “good” to “excellent” credit saves less than the jump from “poor” to “fair.”
Here is a simple example. Two 35-year-old drivers live in the same ZIP code. Both have clean records and drive the same sedan. Driver A has excellent credit and pays about $1,900 a year. Driver B has poor credit and may pay $3,500 or more. The only real difference is the insurance score.
However, rules vary by state. California, Hawaii and Massachusetts ban credit-based insurance scores for auto rates. Michigan banned using credit as a rating factor under its 2019 auto insurance reform. Other states limit how insurers use it. For example, many states bar insurers from canceling or non-renewing a policy based on credit alone. Some also require insurers to review your score at renewal if you ask. With the insurance score explained for your state, you will know how much weight it carries.
Your Rights Under Federal Law
The Fair Credit Reporting Act (FCRA) gives you key protections. An insurer needs a “permissible purpose” to check your credit. Underwriting an insurance policy qualifies. As a result, you do not have to give separate permission in most cases.
If your credit leads to a higher rate, the insurer must send an adverse action notice. This notice should name the credit bureau used. It should also explain your right to a free copy of that report within 60 days. You can then dispute any errors with the bureau.
Insurance score checks are soft inquiries. They do not lower your credit score. As a result, you can shop for quotes from many insurers without harming your credit. This is one of the most useful points to know with your insurance score explained.
Steps to Improve Your Insurance Score and Lower Your Rate
You cannot buy your insurance score directly from most insurers. However, you can improve the credit data behind it. Small changes add up over 6 to 12 months.
1. Check your credit reports. Visit AnnualCreditReport.com. It offers free weekly reports from all three bureaus. Look for wrong late payments, accounts you did not open, or old debts that should have dropped off. Most negative items fall off after seven years.
2. Request your LexisNexis report. LexisNexis offers a free consumer disclosure report once every 12 months. It shows insurance claims data and may include attract score details. Errors here can also raise your rate.
3. Pay every bill on time. Payment history is the biggest factor. Set up autopay for at least the minimum. One missed payment can drag down your score for years.
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4. Lower your credit utilization. Try to keep card balances below 30% of your limits. Below 10% is even better. For example, on a $5,000 limit, aim to carry under $1,500.
5. Avoid opening many new accounts. Each new account can lower your average account age. Several new accounts in a short time can also signal risk.
6. Ask for a re-rate. After your credit improves, call your insurer. Ask them to re-run your insurance score. Many states require insurers to do this at least once a year when you ask.
7. Shop around. Each insurer uses its own scoring model and weights. In most cases, comparing at least three quotes will show big price gaps. The insurance score explained by one company may differ from another’s result.
Also look at other discounts while your credit recovers. Bundling home and auto, safe driver programs and telematics apps can offset a weaker score. Typically, telematics discounts range from 10% to 30% for safe driving habits.
Frequently Asked Questions
Is an insurance score the same as a credit score?
No. Both use your credit report, but they predict different things. A credit score predicts loan repayment. With the insurance score explained, it predicts the chance you will file a claim.
Does getting a car insurance quote hurt my credit?
No. Insurers use a soft inquiry to check your insurance score. As a result, your credit score does not drop. You can compare as many quotes as you like.
Can I see my insurance score?
In most cases, insurers do not share the exact number. However, you can request your LexisNexis consumer report and your free credit reports. If an insurer raises your rate due to credit, it must send an adverse action notice.
Which states do not allow insurance scores for car insurance?
California, Hawaii, Massachusetts and Michigan do not allow credit as an auto rating factor. Many other states limit how it can be used. Check with your state insurance department for current rules.
How long does it take to improve an insurance score?
Typically, you can see changes in 6 to 12 months of on-time payments and lower balances. Serious items like bankruptcy take longer. With your insurance score explained and your credit improving, ask your insurer for a re-rate at renewal.
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Official Sources & Resources
For verified information on auto insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- Federal Trade Commission — Auto Insurance: consumer.ftc.gov
- USA.gov — Car Insurance: usa.gov/car-insurance
Content last reviewed October 2026. If you notice any outdated information, please contact us.