Most Americans do not realize that insurers use a separate scoring system called an insurance score to determine premiums — and it is different from your credit score.
What Is an Insurance Score?
An insurance score combines elements of your credit history with claims data to predict how likely you are to file a claim. It typically ranges from 200-997, with higher scores getting better rates.
Key Differences from Credit Scores
- Insurance scores weigh payment history more heavily
- They factor in claims history and frequency
- Length of credit history matters more than total debt
- Hard inquiries have minimal impact on insurance scores
States That Ban Insurance Scoring
California, Hawaii, Massachusetts, and Maryland prohibit the use of credit-based insurance scores. Michigan joined the list in 2026 after passing consumer protection legislation.
To improve your insurance score, focus on paying bills on time, reducing outstanding debt, and avoiding filing small claims that could signal higher risk.
