Credit score vs. insurance score: What’s the difference?

Credit score: What you’re paying on. Insurance score: How well you’re paying it off.

You may think that your credit score can drive up your rates or even stop carriers from insuring you. And you’d be partially right. However, some carriers use a magical number called your “insurance score.” Wait a minute – what? There are two different scores…and they’re not the same? But they sound so similar!

Yes, they do sound a lot alike, BUT your insurance score considers different things about your financial history.

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Indulge us for a moment – this is easier to explain with a visual. Let’s go back to school with a Venn diagram:

insurance score vs credit score

So, realistically, you could have a lot of debt (*cough student loans cough cough*), but still have a pretty decent insurance score if you’ve been making payments on-time and regularly. Remember – credit score has to do with the number of accounts you have, the kind of credit lines you have, and your debt. Your insurance score looks at the standing of all these accounts. But both are concerned with your record of bill-paying and the amount of time that you’ve had your accounts.

There are also tons of other factors that go into determining your insurance rates. So, regardless, you don’t have to be banished to the Realm of the Uninsured just because of your credit score. Just find a carrier that uses an insurance score instead. If your credit score improves before you renew, you could get more options for insurance companies the next time around. Make sense? Not all is lost!

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If figuring all that out seems a little tricky, just give our agents a call. They’re great at explaining that sort of thing. Plus, they shop around for you year after year to see if they can get you a better rate. Or LiveChat with them – to avoid the awkwardness of a phone call.

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