{"id":594,"date":"2026-09-11T15:21:20","date_gmt":"2026-09-11T19:21:20","guid":{"rendered":"https:\/\/www.nicholasinsurance.net\/?p=594"},"modified":"2026-09-11T15:21:20","modified_gmt":"2026-09-11T19:21:20","slug":"whats-an-insurance-score","status":"publish","type":"post","link":"https:\/\/www.nicholasinsurance.net\/?p=594","title":{"rendered":"What&#8217;s an Insurance Score?"},"content":{"rendered":"\n<p class=\"has-text-align-center has-content-heading-font-size wp-block-paragraph\">See what it is, how it&#8217;s calculated, and what it does to your rates!<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-davegarcia-32641818-1024x683.jpg\" alt=\"\" class=\"wp-image-595\" style=\"aspect-ratio:1.4992854967554525;width:868px;height:auto\" srcset=\"https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-davegarcia-32641818-1024x683.jpg 1024w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-davegarcia-32641818-300x200.jpg 300w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-davegarcia-32641818-768x512.jpg 768w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-davegarcia-32641818-1536x1024.jpg 1536w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-davegarcia-32641818-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-content-heading-font-size wp-block-paragraph\">What is an insurance score?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some of you have heard that your rate increased or decreased due to your insurance score. This score is a 3 digit number, typically ranging from 200-997, that insurance companies use to predict how likely you are to file an insurance claim. Some of you may think &#8220;<em>I&#8217;ve never filed a claim, and my insurance score is still low!&#8221;<\/em> An insurance score is not <strong>only <\/strong>based on you filing claims, but rather a number of other factors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-content-heading-font-size wp-block-paragraph\">What factors calculate your insurance score?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although it is different than a credit score, the way they are calculated are very similar. Typically when you improve you credit, your insurance score will also go up. Credit scores predict the likelihood of you becoming very delinquent in repaying debts you&#8217;ve borrowed, while insurance scores predict the likelihood of you filing a claim. There are five factors used in calculating your score:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-foreground-color has-text-color has-link-color wp-elements-1\">Payment History &#8211; 40%<\/li>\n\n\n\n<li class=\"has-foreground-color has-text-color has-link-color wp-elements-2\">Current Level of Debt &#8211; 30%<\/li>\n\n\n\n<li class=\"has-foreground-color has-text-color has-link-color wp-elements-3\">Credit History Length &#8211; 15%<\/li>\n\n\n\n<li class=\"has-foreground-color has-text-color has-link-color wp-elements-4\">New Credit Accounts &#8211; 10%<\/li>\n\n\n\n<li class=\"has-foreground-color has-text-color has-link-color wp-elements-5\">Credit Mix &#8211; 5%<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These scores are obtained by using third party vendor agencies such as Experian, TransUnion, or LexisNexis. Insurance companies typically purchase the use of these scores in a tool to help determine your premium. Under the Fair Credit Reporting Act, insurers are prohibited from using any personal information to determine rates such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Race or Color<\/li>\n\n\n\n<li>Gender<\/li>\n\n\n\n<li>Marital Status<\/li>\n\n\n\n<li>Religion<\/li>\n\n\n\n<li>Income<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You are able to obtain a free credit report once a year using one of the three major credit reporting agencies: Experian, Equifax, and TransUnion. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-content-heading-font-size wp-block-paragraph\">How often is my insurance score updated?<\/p>\n\n\n\n<div class=\"wp-block-media-text has-media-on-the-right is-stacked-on-mobile\"><div class=\"wp-block-media-text__content\">\n<p class=\"wp-block-paragraph\">Insurance companies usually pull new insurance scores every <strong>one to three <\/strong>years; However, most companies will pull a new score at the annual policy renewals. Policy holders or insurance producers (with customer&#8217;s permission) are able to request that a new score be ran throughout the policy period, though insurance companies are not <em>required <\/em>to pull new scores more frequently than once in a 12-month period.<\/p>\n<\/div><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-ian-panelo-4567357-1024x683.jpg\" alt=\"\" class=\"wp-image-596 size-full\" srcset=\"https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-ian-panelo-4567357-1024x683.jpg 1024w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-ian-panelo-4567357-300x200.jpg 300w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-ian-panelo-4567357-768x512.jpg 768w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-ian-panelo-4567357-1536x1024.jpg 1536w, https:\/\/www.nicholasinsurance.net\/wp-content\/uploads\/2026\/09\/pexels-ian-panelo-4567357-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p class=\"has-content-heading-font-size wp-block-paragraph\">What is a <em>good <\/em>insurance score?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Each reporting agency has a different scale they use to determine your insurance score. LexisNexis uses a score that ranges from 200-997. Below is a general table of scores:<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-930d3512 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-930d3512 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center has-vivid-green-cyan-color has-text-color has-link-color wp-elements-6 wp-block-paragraph\" style=\"border-width:1px\"><strong>INSURANCE SCORE RANGE<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center has-vivid-green-cyan-color has-text-color has-link-color wp-elements-7 wp-block-paragraph\" style=\"border-width:1px\"><strong>RATING<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-930d3512 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-vivid-red-color has-text-color has-link-color wp-elements-8 wp-block-paragraph\" style=\"border-width:1px\"><strong>250 &#8211; 500<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-vivid-red-color has-text-color has-link-color wp-elements-9 wp-block-paragraph\" style=\"border-width:1px\"><strong>POOR<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-930d3512 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-deep-orange-color has-text-color has-link-color wp-elements-10 wp-block-paragraph\" style=\"border-width:1px\"><strong>501 &#8211; 625<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-deep-orange-color has-text-color has-link-color wp-elements-11 wp-block-paragraph\" style=\"border-width:1px;border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-left-radius:0px;border-bottom-right-radius:0px\"><strong>BELOW AVERAGE<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-930d3512 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-12 wp-block-paragraph\" style=\"border-width:1px\">.<strong>626 &#8211; 769<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-13 wp-block-paragraph\" style=\"border-width:1px\"><strong>AVERAGE<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-930d3512 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-vivid-green-cyan-color has-text-color has-link-color wp-elements-14 wp-block-paragraph\" style=\"border-width:1px\"><strong>770 &#8211; 977<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<p class=\"has-text-align-center has-vivid-green-cyan-color has-text-color has-link-color wp-elements-15 wp-block-paragraph\" style=\"border-width:1px\"><strong>GREAT<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Many companies will give favorable discounts to those who have average or great scores; Additionally, they will add surcharges to policies that have below average or poor insurance score ratings. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-content-heading-font-size wp-block-paragraph\">How do I raise my insurance score?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just as you would to improve your credit score, to raise your insurance score:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pay all bills on time!<\/li>\n\n\n\n<li>Limit your credit usage &#8211; just because you have a limit of $3,000 doesn&#8217;t mean you have to use it all.<\/li>\n\n\n\n<li>Avoid opening new accounts if possible.<\/li>\n\n\n\n<li>Keep your oldest accounts open. Even if you have a credit card that&#8217;s been paid off, you don&#8217;t have to call to close the account. This helps your age of credit history and can benefit your report numbers!<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-upper-heading-font-size wp-block-paragraph\">Citations:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.legislature.mi.gov\/Laws\/MCL?objectName=mcl-500-2153\">https:\/\/www.legislature.mi.gov\/Laws\/MCL?objectName=mcl-500-2153<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/content.naic.org\/article\/consumer-insight-credit-based-insurance-scores-arent-same-credit-score-understand-how-credit-and-other-factors\">https:\/\/content.naic.org\/article\/consumer-insight-credit-based-insurance-scores-arent-same-credit-score-understand-how-credit-and-other-factors<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/insurancescores.fico.com\/CreditvInsurance\">https:\/\/insurancescores.fico.com\/CreditvInsurance<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.cnbc.com\/select\/what-is-an-insurance-score\">https:\/\/www.cnbc.com\/select\/what-is-an-insurance-score<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>See what it is, how it&#8217;s calculated, and what it does to your rates! What is an insurance score? Some of you have heard that your rate increased or decreased due to your insurance score. This score is a 3 digit number, typically ranging from 200-997, that insurance companies use to predict how likely you [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-594","post","type-post","status-publish","format-standard","hentry","category-history"],"_links":{"self":[{"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=\/wp\/v2\/posts\/594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=594"}],"version-history":[{"count":2,"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=\/wp\/v2\/posts\/594\/revisions"}],"predecessor-version":[{"id":598,"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=\/wp\/v2\/posts\/594\/revisions\/598"}],"wp:attachment":[{"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nicholasinsurance.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}