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What is An Insurance Score?

By November 14, 2014 May 21st, 2020 Insurance

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Your insurance score is a number that is calculated based on your credit score and claim history by insurance companies. It’s used to determine the probability that a policyholder will file a claim in the future.

Insurance companies use Comprehensive Loss Underwriting Exchange (CLUE), and the Automated Property Loss Underwriting System (A-PLUS) to research a person’s claim history.

Studies show that people with poor credit ratings are more likely to file insurance claims. Many insurance companies believe the higher your credit score is the lower the chance of you filling a claim, thus the higher insurance score. Insurance scores range from 200 to 997, a good score is usually 770 or higher. A poor score is typically anything under 500.

The insurance score is important because it is how insurance companies assess the risk of loss with a policy holder. Because of this it is important to be vigilant in maintaining, or improving your credit rating. 


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