Insurance Score.

In plain English

An insurance score, sometimes called a credit-based insurance score, is a rating insurers use to predict how likely you are to file a claim. It is built largely from information in your credit report, such as your payment history, how much debt you carry, and how long you have had credit, but it is not the same as a regular credit score. Insurers in most states use it alongside other factors to decide your premium, so two people with identical homes can pay different rates. A few states limit or ban using credit information this way, and the rules vary by state.

01Why it matters

Because it leans on your credit, improving how you handle credit over time can lower not just loan costs but your insurance premiums too.

02The math, step by step

Picture two neighbors with the same car and driving record. One has a strong credit history and a high insurance score; the other has missed payments and a low score. The insurer may charge the lower-scoring driver a noticeably higher premium for identical coverage. Not every state allows this: as of 2026, California (under Proposition 103), Hawaii, Massachusetts, and Michigan restrict or ban the use of credit-based scoring for personal auto insurance. To see how your state treats it, check naic.org or your state insurance department.

03What this is NOT

04Receipts

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