What’s your “insurance score”?

Just like your credit score affects your cost of borrowing, your insurance score affects your insurance costs.

Most insurance companies are now using insurance scores as a major factor in determining rates for auto and sometimes home insurance.  The formulas, which vary by company, use information from your credit history to establish an insurance score for you.  Based on this score, you are assigned to a tier or rating group. The overall effect can be huge, with those in the worst tiers paying 2, 3, or even 4 times the premium that those in the best tiers pay.

Insurance scores are different than credit scores.  Insurance scores use only those factors from your credit history that show a direct correlation to future claim potential.  These factors typically include payment history, number and age of accounts, and overall activity. Insurance scores generally do not consider income, assets, or total debt.

Related: Improving your insurance Score

Are you looking for ways to save money on your car insurance?

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.

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