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In many states, auto insurers are permitted to consider your credit score when determining your rate. While this is nothing unexpected, there are several other lesser-known reports they rely on as well. It's beneficial to understand these so you can better anticipate your monthly premium.
MoneyTalksNews compiled a list of ten factors, including your credit score, that insurance companies use to determine your rate. While your claims history and driving record are fairly straightforward, there are some more surprising factors as well:
Undisclosed-Driver Report
Both Verisk and LexisNexis provide insurers with reports that identify any undisclosed drivers residing in your home by cross-referencing public records. One such report targets newly licensed drivers aged 15 to 25 who haven’t been disclosed yet.
If an undisclosed driver of any age is identified, you will likely be required to either add them as a driver or exclude them, depending on whether your state and insurance provider allow this option.
Attract Score
LexisNexis, a provider of risk and data analytics, offers another credit-based score called the Attract Insurance Score. This score assists insurers in assessing your risk level. Unlike a FICO insurance score, you can obtain your own Attract score from LexisNexis for a small fee.
To discover more reports and data used by these companies, check out the full article.
Photo by TheBusyBrain.
