Glossary

Insurance score

A number insurers use to predict how likely you are to have claims, usually calculated from your credit report, that can raise or lower your rate.

Also called: insurance risk score, insurance credit score

An insurance score is a risk score insurers use to estimate how likely a customer is to file claims and how costly those claims may be. In auto insurance the term almost always means a credit-based insurance score, built from information in your credit report by companies such as FICO or LexisNexis. Some insurers also build their own models that combine credit with other data.

Insurers use the score in two ways. In underwriting, it can help decide whether to offer a policy, which company in an insurance group writes it or which pricing tier you fall into. In rating, it is one of many rating factors, alongside your driving record, vehicle, location and coverage choices. Scores run on different scales depending on the vendor, and a higher score generally means lower predicted risk. You usually cannot see the exact score an insurer used, but you can see the credit report behind it.

Where state law allows it, the score can make a large difference in price between drivers with otherwise similar profiles. California, Hawaii, Massachusetts and Michigan bar or restrict its use in auto rates. If an insurer charges you more because of information in your credit report, the Fair Credit Reporting Act requires it to tell you and to name the reporting agency. Checking your credit reports for errors before you shop is a simple step.

Last reviewed October 4, 2026

In the index now

Related terms

Credit-based insurance score A score built from parts of your credit report to predict how likely you are to file insurance claims, used in pricing where state law allows. Rating factors The characteristics insurers use to price a policy, such as driving record, location, vehicle, mileage and, where allowed, age and credit. Underwriting The process an insurer uses to decide whether to accept an applicant, on what terms, and in which pricing tier or company. CLUE report A LexisNexis database report of past auto or home insurance claims, which insurers pull to price and accept policies. Premium The amount you pay for an insurance policy over its term, built from the insurer's rate, your rating factors, coverage choices and discounts.

Related guides

Your CLUE report and motor vehicle record explained Insurers check your claims history (CLUE) and state driving record (MVR) before pricing a policy. What each holds, how to get them and fix errors. Credit-based insurance scores and car insurance How insurers use credit-based insurance scores to price car insurance, which states ban or limit it, and your rights under federal and state law.