Frequently Asked Questions

• What is your insurance score?
• Where do insurance scores come from?
• What information is included in an insurance score?
• Does an insurance score reflect income levels?
• Why do insurance companies use credit information and insurance scores?
• Does your insurance agent have access to your credit report?

What is your insurance score?

An insurance score is a snapshot of your insurance risk based on information in your credit report that reflects your credit payment patterns over time, with more emphasis on recent information.

Back to Top

Where do insurance scores come from?

Insurance scores are based on information from consumer credit reports from the three major credit bureaus -- Equifax, Experian and TransUnion.

Back to Top

What information is included in an insurance score?

Scores are based on credit-related information that has proven to be related to the predictability of insurance claim activity. Consumer credit report information used in scoring includes:
--Late payments, collections and bankruptcies (where allowed by law)
--Outstanding debt, average and number of balances recently reported
--Length of time you have had an established credit history
--New applications for credit, number of inquiries and new accounts recently opened
--Types of credit in use such as bank cards, department store cards and installment loans

Generally, insurance scores may be more adversely affected by habitual signs of credit management problems, rather than by an occasional late payment.

Back to Top

Does an insurance score reflect income levels?

No. Insurance scores reflect only how well individuals manage their financial assets -- not how much money they earn or the amount of their asets.
A person with an average income who regularly pays their bills on time and doesn't have a lot of financial obligations would have a high insurance score. Even a past bankruptcy may not be a serious negative factor if it occured several years ago and the individual has since used credit responsibly.

Back to Top

Why do insurance companies use credit information and insurance scores?

Credit information is just one factor that provides an objective, accurate and consistent tool that insurers may use -- along with other applicant information -- to better anticipate claims. By doing so, insurers can better control risks, enabling them to offer insurance coverage to more consumers at a more competitive cost.

Back to Top

Does your insurance agent have access to your credit report?

Companies such as Hardesty Insurance and Allied safegard our customers' nonpublic information in compliance with privacy regulations. Representing Allied for your personal insurance needs, we do not have access to your credit report.

Back to Top