Your credit-based insurance score is a three-digit number that tells insurers how likely you are to file a claim. If your score is low, insurers will typically charge you more for your insurance coverage. If it is high, you'll usually pay a lower premium.
Insurance scores are like the credit scores lenders review when you apply for a loan or new credit card, using much of the same financial information. But credit-based insurance scores also factor in other pieces of information.
Your credit-based insurance score considers:
- Your credit history: a measure of how well you've paid your bills in the past
- Current debt levels
- Length of your credit history
- New credit that you've added re...