An insurance score is a credit-based number that insurance companies use to help predict how likely a person is to file claims, and it influences the premium you're quoted for auto and home insurance in most states. It's calculated from credit report data — payment history, outstanding debt, length of credit history — but it is not the same as your credit score, and getting insurance quotes does not lower it.
How it works
When you request a quote, most carriers pull a credit-based insurance score (from models built by companies like FICO or LexisNexis) alongside your claims history and other rating factors. Actuarial studies have shown correlation between credit-based scores and claims frequency, which is why regulators in most states allow their use — though a few states ban or restrict it, and carriers must follow each state's rules.
Example: two drivers with identical cars and clean driving records apply to the same carrier. One has a long history of on-time payments and low balances; the other has recent collections and maxed-out cards. The first driver will typically be quoted a lower premium because their insurance score is stronger — even though their driving records look the same on paper. This is illustrative of how the factor works, not a statement about any specific carrier's pricing.
Insurance score checks are soft inquiries: they don't affect your credit score, and shopping for quotes carries no credit penalty.
Why it matters for your policy
Because insurance scores move premiums, improving your credit habits — paying on time, reducing balances, avoiding new collections — tends to lower your insurance costs over time, on top of its other benefits. If your credit has recently improved significantly, re-shopping your insurance can capture the difference, since your old carrier may be rating you on stale information.
Common mistakes: assuming quotes hurt your credit (they don't — soft inquiry); not asking about "extraordinary life circumstances" exceptions, which some states require carriers to offer after events like divorce, medical crisis, or job loss; and not knowing your state's rules — a few states prohibit credit-based scoring entirely. If your score is the weak spot in your profile, carriers weigh it differently, which is another reason comparing multiple carriers pays.
Related terms
- Premium — The number your insurance score helps determine.
- Lapse in coverage — Another rating factor that, like credit, follows you between carriers.
- Independent vs captive agent — Carriers weigh scores differently — comparing many helps.
- Declarations page — Where the resulting premium and coverages are summarized.
- Grace period — Missing payments can hurt both your policy and your credit-based score.
Want a second set of eyes on your policy? Better Choice Insurance Group is an independent agency in St. Charles, Illinois, licensed in 14 states. We'll explain your coverage in plain English and compare quotes across our carriers — free, no obligation.
Frequently asked questions
Is my insurance score the same as my credit score?
No. Both draw on credit report data, but they're built to predict different things — a credit score predicts loan repayment, while an insurance score predicts insurance claim likelihood. You can have a good credit score and a mediocre insurance score, or vice versa, because the models weight factors differently.
Does getting insurance quotes hurt my credit?
No. Insurance quoting uses a soft inquiry, which is not visible to lenders and does not lower your credit score. You can shop as many carriers as you like with zero credit impact.
Can I improve my insurance score?
Yes, the same way you improve credit generally: pay bills on time, keep card balances low, avoid collections, and let your credit history age. Improvements show up when carriers re-pull your score — often at quoting or re-rating — so re-shop your insurance after your credit meaningfully improves.
Last reviewed: August 2026 · Reviewed by Evan Larson, Licensed Insurance Agent