One of the many factors used to calculate a specific policy premium is an insurance score.  Most insurance companies use insurance scoring along with motor vehicle reports, claims history reports and application information to help determine an appropriate premium. 

An insurance score uses some of the information found in your credit report and helps predict the likelihood of filing a claim or the level of risk. Such factors as income, marital status and address are not used in scoring. The application of an insurance score varies by company as do the models used in determining a score.

There is a proven correlation between the way you handle credit and how responsible you will be as an insurance risk. Research shows that some people with certain patterns of behavior in their credit history are more prone to losses from an insurance standpoint. Those who are responsible with their finances are usually more responsible property owners and drivers, and typically take preventative measures instead of risks. Insurance scoring benefits the majority of policyholders by lowering premiums.

The following brochure can provide additional information on how insurance scoring is utilized to determine an appropriate premium:

"What's Credit Got To Do With It?"