Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 27, 2020

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Key takeaways...

  • An auto insurance score is a number that determines your monthly insurance payment
  • Your insurance score is important because it directly impacts your finances and follows you through life
  • A good score is above 760, whereas a bad score is below 600
  • Several different factors can affect your score
  • If your score is low, there are ways to improve it

There are several reasons why it is important to pay attention to your auto insurance score and make sure that you have a good standing.

Your auto insurance score is similar to a credit score in that it can follow you throughout life, so it can be extremely valuable to research and understand exactly what a good auto insurance score is and why it matters.

This article will answer some necessary questions, as well as provide tips and tricks to ensure that your auto insurance score is always in good standing.

If you’d like to check on better auto insurance rates beforehand, start comparison shopping by entering your ZIP code above!

What is an auto insurance score?

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The Insurance Information Institute defines an auto insurance score as “a numerical ranking based on a person’s credit history.”

Your auto insurance score, therefore, involves your personal credit score.

These two scores are linked and can impact future decisions that are made about things such as:

  • Buying a home
  • Obtaining loan eligibility
  • Renting a car
  • Renting an apartment, etc.

A good insurance score is above 760, and a bad score is below 600.

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Why is your auto insurance score important?

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Although an auto insurance score can seem like an arbitrary number that has no real meaning, that could not be further from the truth.

Your personal auto insurance score is vital, as car insurance companies will use your ranking to determine whether or not you are eligible to be on their insurance plan.

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Your score will also help those car insurance companies determine what your annual insurance fee will be.

If your score is too low, you may have to pay a lot more money each month than someone with a higher credit score.

Insurance scores are good indicators of the following:

  • They show how you manage money and if you are financially responsible, which companies pay attention to when deciding your rates.
  • Scores can be good predictors for future insurance claims.
  • They can show car insurance companies the difference between a low insurance risk and a high insurance risk. Your insurance score can tell a car insurance provider whether they should view you as a barely risky or an extremely risky client.
  • Insurance scores can indicate whether a client is more or less likely to file a claim. The Insurance Information Institute notes that people with bad insurance claims are far more liable to file a claim in the case of an accident.

What factors determine the price of your auto insurance policy?

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Several factors are involved in determining your auto insurance score.

Here are some of the most common factors:

  • Your personal driving history is important when a car insurance company is calculating your score. If you have a good driving record, then your premium payment is going to be much lower than if you have a history of getting into accidents or receiving traffic violations, such as a speeding ticket.
  • The approximate time that you have driven. If you are a new driver, you will likely pay more for your insurance, because you have not had much time to build up your credit score.
  • How often you use your vehicle is important, because if you drive your car many miles a day you are more likely to have opportunities to get into an accident.
  • Other factors include those unique to you, such as your gender, age, type of car you drive, and of course, your credit score.

What can you do to improve your auto insurance score?

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Here are a few things you can do to try to raise your insurance score:

  • Your auto insurance score is closely related to your overall credit score. So, it makes sense to spend time and effort improving your credit score.
  • Accumulate driving experience and build up a good track record with no accidents or traffic violations.
  • Acquire a new vehicle that is smaller or safer to drive, which will, in turn, reduce the risk of accidents.

Always keep in mind that a good insurance score is a good indicator that you are a responsible person in all areas of your life.

If you have a good credit score, you are likely to have a good insurance score, which means that you are also more likely to be a responsible driver.

Being a responsible driver shows that you value the opportunities that are given to you, and you work to maintain your relationships with those opportunities.

By simply driving well, remaining alert, and being vigilant in cases where an accident is unavoidable, you will likely remain in good standing with your car insurance company.

If you are a responsible driver and have a good credit score and wish to compare auto insurance rates, enter your ZIP code below to get started!