auto insurance score가 뭐에요?? 알려주세요....ㅡㅡ;

http://blog.creditkarma.com/insurance-scores/whats-up-with-my-auto-insurance-score/

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There’s a lot of confusion surrounding auto insurance scores, and it’s understandable. Why would your insurance premiums be based on your credit history, something that’s completely unrelated to your driving history? Today we’ll try our best to clear up the confusion.

What is an auto insurance score?

The auto insurance score—also called a credit-based insurance score—is a three-digit number meant to predict the likelihood that you’ll file an insurance claim. The auto insurance score you receive on Credit Karma ranges from 150 to 950, and it’s calculated using data from your TransUnion credit report. However, it is not the same thing as a credit score. Also, it has nothing to do with your driving record.

As these scores came into wide use, the National Conference of Insurance Legislators (NCOIL) Model Act started regulating the use of credit information by insurers in 2007.

Who uses it?

These scores have become more prevalent in the past several years. They’re used by the 15 largest auto insurers, including Allstate, GEICO, Nationwide, Progressive, StateFarm and USAA. The scores can vary from company to company, as different factors are used and weighted in their creation.

How does my credit affect my insurance rates?

While most auto insurers use credit information to help set your premium, they also use other factors, including your driving record as well as market demographics. In fact, the NCOIL Model Act prohibits insurers from amending or setting your rates based solely on your credit profile.

For instance, if you currently have a good insurance premium, you shouldn’t worry about your insurance costs suddenly skyrocketing due to a recent credit blunder. That’s restricted by the NCOIL Model Act.

It’s also important to note that these scores are not used to predict whether or not you’ll pay your premium; they’re meant to predict whether or not you’ll file an insurance claim. In other words, they attempt to estimate future losses to the insurance company instead of your future payment behavior.

The good news is that you can benefit from a good insurance score coupled with a good driving record. You could qualify for a lower rate than you would get based solely on your driving record.

Are insurance scores fair?

It might seem strange that your credit history can be used at all in setting insurance premiums, but there are reports to back it up. A 2007 FTC study found that these insurance scores are effective predictors of risk.

However, there are opponents to the credit-based insurance score. One 2005 study suggests that this method of setting insurance premiums “has a disproportionate impact on consumers in poor and minority communities.”

What if I don’t want my insurance company using my credit?

Whether or not this practice is fair is still up for debate. But the Fair Credit Reporting Actallows for the use of credit information by insurance companies.

If you’re worried about your credit negatively affecting your insurance rates, check with your insurance company to see if it uses credit information. Most large, countrywide companies do, but you may find a smaller, regional insurance provider that doesn’t.

Bottom Line:

If you’re already with an insurance company that uses credit to help set premiums, know that your rate won’t change because your insurer suddenly decides to recheck your credit. In fact, if an insurance company denies you coverage or increases your rates based on information in your credit report, you have rights. Read this American Insurance Association brochure for more information. It’s also important to remember that you could receive lower rates if you have a good insurance score and great driving record.

Have more questions? Find out if they’ve already been answered in our Credit Advice Center.

Bethy Hardeman is the Social Media Manager and Writer at Credit Karma.

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135 Comments

1. 

   We need to write our Congressmen and see if they can do anything about this crazy way of rating us so poorly

   Robert Suszckiewicz at 2:44 pm on November 9, 2012
2. 

   this is stupid!!!!they dont know me so thay should not (assume!!
   in 42 yrs i never hit no one or enything .

   h dexter at 8:09 pm on November 14, 2012
3. 

   More Bull****!

   Michael gigliotti at 4:48 pm on November 17, 2012
4. 

   THIS REPORT YOU HAVE IS INACURATE FOR ME. SAM’S CLUB IS A TERRIBLE ACCOUNTING COMPANY. I WAS NEVER LATE ON ANYTHING IN MY LIFE. SAM’S CLUB WILL NOT FIX THERE ERRORS. I WAS NOT MAILED A BILL THAT I RECEIVED BECAUSE I LOST MY HOME DUE TO KATRINA HURRICANE. I LOST MY HOUSE AND EVERYTHING AND MOVED TO A DIFFERENT STATE.

   EMILE B. FABACHER at 4:18 pm on November 19, 2012
5. 

   This is a crazy way to score my insurance rating, ’cause I’m 47, and have only files one (1) claim (in 2007), in my entire driving history, and I have a LOW rating?!? I’ve never failed to pay on time, and never had my insurance coverage canceled for non-payment.

   W. Nelson at 3:44 am on November 20, 2012
6. 

   I’m so sorry to hear about your troubles, Emile. We’re happy to help you look into this further. Shoot us an email at support@creditkarma.com when you get a chance.

   bethy at 11:02 am on November 20, 2012
7. 

   So where do we qrite to find out why our insurance scores are so low ? I just went from poor to fair and I havent even had a traffic ticket since the 70s.

   Eugene at 3:13 pm on November 21, 2012
8. 

   You know, I have just recently started to rebuild my credit and now I get this punishing news that my auto insurance is going to play a part in this “WHILE I AM DISABLED AND CAN’T REMEMBER THE LAST TIME I DROVE A CAR! I DON’T EVEN HAVE A LICENSE AND HAVEN’T HAD ONE SINCE I CAN REMEMBER. Believe me this puts the brakes on me. I get a nominal SS check, I have no license, and sure can’t afford a car. Well now I know why so many of my friends have to turn to illeagle means of “Keeping their head above water”. I can feel the water going down my throat and beginning to come up my nose. I will have to come up for air soon! No lifeguard in sight!!I guess I’ll have to just swim the way my friends do.

   Michael F. Phillips at 3:02 am on November 22, 2012
9. 

   As the article states, the score isn’t based on your driving record at all. Unfortunately, we’re in the same boat as you here at CK – we know very little about these insurance scores. I’m doing my best to research and share more as I find it, but for now know that it’s not a score your should spend much time worrying about. Here’s why: http://blog.creditkarma.com/credit-101/insurance-scores/dont-fret-over-insurance-score/

   bethy at 7:47 pm on November 26, 2012
10. 

    Thanks for the article! Very informative! Everyone should consider using diminished value or total loss claims services. In the case that you have to file an insurance claim, using these services can help you get the full amount of money you are entitled to.

    Collision Claims at 7:45 am on November 27, 2012
11. 

    I am not certain about how the auto insurance is calculate. I, just at the others have NEVER had my insurance cancelled or late. I have file an insurance claim last year, due to someone else damaging my car. The other guys did pay for damages,however, I filed a claim to let my insurance company know what had occurred. Does this effect my rating? Just curious?

    Christa at 10:29 am on November 27, 2012
12. 

    My credit is Good, my payments have always been on time..my ENTIRE LIFE and I’ve NEVER filed a claim yet my insurability is POOR because I racked up a few credit cards but have never been late EVER!!!! How’s that fair!!!! NO accidents, No tickets, NO claims in my 35+ Driving History.

    Jose at 5:46 pm on November 27, 2012
13. 

    I can tell you how this works. It’s set up as a “credit score” but its base on insurance accounts. How many you have, how much you pay, and weather or not you have any claims. The more things you insure the better your score. Rapists!

    Anthony brown at 7:09 am on November 28, 2012
14. 

    You guys are a bunch of whining babies. If you were reading about the auto insurance scores, you would have known that this score has no affect on credit scores or is it saying that you would not pay. Its just something for the auto insurance companies to worry about. I too am on disability and getting a disability check (which is real small) but have not missed a payment in years. Plus I have bad credit (535) but, I have an 835 auto insurance score out of 950. I am at this point, trying to rebuild my credit to purchase a house. STOP WHINING ABOUT A SCORE THAT DOES NOT MEAN ANYTHING AND LEARN HOW TO SPELL!!!!!

    David at 4:35 pm on November 29, 2012
15. 

    I’m an American and a Veteran. I am innocent until proven guilty in this Country. I have a sparkling drivers record. I put constant effort into being a good driver. Now I’m being punished like the crappy and stupid drivers that I work hard not to become one of their victims. This is insulting and unconstitutional.I feel that my good efforts and rights are violated. What can we, as good drivers do about this? Something does NEED to be done NOW!!

    gg at 5:36 am on December 1, 2012
16. 

    Insurance Industry has become a form of social cancer.
    This is just another way they have been able to stack the deck to increase their profits. I have a 50yr + perfect driving record and an excellent credit rating, with a very poor auto insurance rating. No one should want government control of this industry but they have left no other option. Health care changes will be first and others to follow if they continue to pick the bones of all of us.

    Tom Glass at 8:57 am on December 1, 2012
17. 

    LOL, I’m a terrible driver (which is why I rarely drive) and I have a good auto insurance score.

    Anthony M at 9:41 am on December 2, 2012
18. 

    My insurance score just jumped from poor (810) to good (865) without me doing anything. The other two scores that CreditKarma calculate didn’t change. For a long time, my regular credit score has been excellent, only my car insurance score was poor. They are getting closer together, but without me doing anything in particulur.

    Can someone explain the mystery what actually influences my car insurance score, i.e. what are the specifics? I know my low score (despite having good/excellent credit) is for real, because I get issued an adverse decision letter every time I get an insurance quote.

    Fred at 5:36 am on December 3, 2012
19. 

    ya know, poor ratings and higher rates even for great drivers, make it harder to pay bills and get back and forth to work from some companies that depend on our payments. Since insurance is manditory in alot of states, you’d think the serious corporate financial strategist would not be trying to strangle us with high prices to attract more business.

    Chris at 4:59 pm on December 5, 2012
20. 

    This is BULLSH** BECAUSE IV HAD A FEW HARD TIMES LOOSING MY JOB AND SUCH..FOR THEM TO LOOK AT MY CREDIT REPORT AND SAY SHE HAS BAD CREDIT AND I WILL BE SOMEONE WHO WILL FILE AN INSURANCE CLAIM WHAT A LOAD OF TRASH IT HAS BEEN YEARS SINCE IVE EVEN FILED OR HAD ANY KIND OF MVA!!!!! I MEAN COME ON. TIMES ARE HARD ENOUGH ON PEOPLE WITHOUT THEM USING YOUR CREDIT REPORT FOR THERE OWN GAIN AND THAT IS WHAT THEY ARE DOING IF YOU DONT HAVE PERFECT CREDIT SCORE THEN YOU ARE NOTHING…AND YOU WILL PAY FOR HAVING HARD TIMES..

    Angel at 6:36 pm on December 12, 2012
21. 

    This is quite funny since i haven’t had a license for 15 years due to my disability…and when i say i don’t drive ..I MEAN I DON”T DRIVE…HUH?????? This is crazy…

    VICKI G at 8:43 pm on December 15, 2012
22. 

    If scores range from 150 to 950 how is it that a score of 818 is poor? Why have such a large scale if everything below 949 is poor?

    Rick c at 2:29 pm on December 18, 2012
23. 

    this is crazy another way of helping suppress the lower and middle class people in in our country by adding a complex calculated WIlD GUESS on who’s going to come after them and their money…Let’s not be IGNORANT but IF you do get in an Auto Accident and your car gets Damaged It don’t take a Rocket Scientist to now that a Fothcoming Claim will be filed…Or should we all just ride arounf in our smashed leaking fender fallin muffle driving cars………..I am 63 NEVER I Mean NEVER had an accident OR FILE ONE OF THEIR CLAIMS, retired since 2005 and haven’t driven a car OR owned one since and they want to label me POOR…talk about INJUSTICE…wait until the THE NEW Movie CLEAN GETAWAY comes out…you’ll see what happens to the everyday AVEARGE Joe trying to make it

    Robert S. at 10:52 am on December 19, 2012
24. 

    Is there a way to dispute your Insurance score like your credit record? If so can anyone tell us how to do it.

    Loren z at 12:44 pm on December 22, 2012
25. 

    My ins number just went up to poor, no accidents or claims or missed payments,carry an excellent credit score, this is over a period of 49 years. Sounds to me as another money grab as per insurance requirements.

    Bob at 10:44 am on December 24, 2012
26. 

    This is terribly unfair, I used to have an excellent credit score and because of this rule its knocked down by 20 points. I’ve always been very good about paying bills on time, and the only reason I’ve ever filed a claim is when someone else has hit ME. I don’t think it is fair that my score suffers because other drivers don’t pay attention.

    Judy at 4:19 pm on January 7, 2013
27. 

    WOW, I never knew this happened!!!! What an unfair thing to do!

    Ursala46 at 1:06 am on January 9, 2013
28. 

    This is the most ridiculous thing I ever heard of. I just found out that my insurance score went from poor to fair. How could you do this. I have never had even a parking ticket much less an accident. Who lets the government do these things on the middle class and the poor and the rich have great scores just because they have more money. This is an unfair practice. We need to through out all the laws and the idiots who make them and start over with the original constitution. This nation was founded on God; whatever happened to that. I havent heard that God died and put you people in charge of everything.

    Wanda at 3:52 pm on January 9, 2013
29. 

    Wanda,
    Who are you talking to? You keep saying “you people” CreditKarma is just a site that reports what they find on your file at transunion. So who are the “you people” you are talking to??

    Jesse at 5:37 am on January 11, 2013
30. 

    I have recently done a couple of things that I didn’t know that brought up my score 47 points in one month. I have USAA and I wanted to get a discount on my auto insurance so I opened a bank account (needed to anyway 10% drop) and got renters insurance(10% drop)it lowered my car insurance the exact same amount that the renters insurance cost. I checked my scores today and there it was 788 where it was a 741 same time in December. And all my belongings are covered. I have a clean driving record and a 633 credit rating so you don’t have to have perfect credit to have a good insurance score.

    Chuck at 6:53 pm on January 16, 2013
31. 

    Insurance companies are like banks, they continuously look for new ways to take more money from your wallet, and the government lets them get away with it. This is the most bogus policy I have ever heard, they use your credit score to predict whether you are going to submit a claim. Do you remember the Tom Cruise science fiction movie (the name escapes me!) about pre-crime and how they would throw you in jail for a crime you havent committed yet? This policy is as far fetched as the premise of that movie, but then again the insurance companies and banks are just looking at this with greed in their eyes and that always is out of touch with such common ideas as descency, sense, etc. I hate banks and insurance companies.

    Dennis R. Costa at 9:49 pm on January 16, 2013
32. 

    *** this is stupid!!!!they dont know me so thay should not (assume!!
    in 42 yrs i never hit no one or enything .
    h dexter at 8:09 pm on November 14, 2012 ***

    Wow… really, Dexter? “dont,” “thay,” “never hit no one,” “enything???” You can’t be that stupid. But if you are, maybe there’s a reason why you don’t understand. You’re at least 57 years old, so that means you’re either extremely uneducated (you don’t understand the system), poor (and driving a low safety-rated car) or you don’t care about proper English (possibly also reflecting on your style of driving). Do what you’re supposed to do in life, and quit blaming other people for your apathetic actions.

    Dave at 3:19 pm on January 17, 2013
33. 

    It really is disturbing that now auto insurance quotes will go based on your credit history. Unfortunately, due to my divorce my credit has been a struggle to get back up. My driving record is clean and I put close to nothing miles on my vehicle. I can’t win. I received a notice in the mail from my carrier that my premium has gone up because of my score .. Is that allowed???

    J.Torres at 9:52 am on January 20, 2013