Insurance score
From Wikipedia, the free encyclopedia
An insurance score is a numerical ranking of a potential insured's financial status (usually credit history). Actuaries use these scores to determine risk, and charge premiums based on that risk.
Potential insureds who have low insurance scores statistically file more insurance claims and pay higher premiums. Conversely, potential insureds with better insurance scores tend to enjoy lower premium rates, as they are perceived to be better risks.
[edit] Sources
[edit] External links
- Insurance Information Institute
- Consumer Reports August 2006 article about the use of credit reports for car insurance premium setting
