About Insurance Scores

• The Insurance Information Institute reports that insurance scores help insurers "differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming." These scores are considered a good way to predict insurance claims a consumer may make. InsuranceScore.com calls an insurance score "a snapshot of your insurance risk at a particular point in time."
  
  

Determining an Insurance Score

• Insurance scores are determined using a customer's credit score, as well as information from industry sources. An article in the New York Times on Dec. 23, 2007, reports that most insurers use two property claims databases. Insurers may purchase insurance scores from credit reporting agencies.
  
  

Good and Bad Insurance Scores

• Insurance scores range from 200 to 997. A good score, according to the New York Times, is 776 or higher, and a poor score would be under 500.
  
  

Maintaining Your Insurance Score

• Bankrate reports that it is "almost impossible" to get your insurance score because companies are not required to share it. The Insurance Information Institute recommends monitoring your credit score and keeping your credit report strong. Also, check your credit report once a year for any errors or mistakes.