This is not simply your credit score. It is a little more in depth than that.
Insurance companies use financial history, along with a host of other factors, to properly classify insureds according to their potential for future losses. Studies have shown a strong correlation between a consumer’s financial history and his or her future insurance losspotential. Thus, insurance companies believe the use of credit information helps them to underwrite and rate applicants at a cost that reflects their anticipated chance of loss.
Insurance scores provide an objective tool that insurers use along with other applicant information to better predict the likelihood of a consumer filing claims. Scores also help to streamline the decision making process, so that policies can be issued more efficiently. By accurately predicting the likelihood of future claims, insurers can better control their risk, thus enabling them to offer insurance coverage to more consumers at a fair cost most specific to that consumer’s exposure.