What is Insurance Score?

Insurance score is a numerical ranking which helps in determining the financial status of the person insured. This score helps in determining the risk and the insurance companies can charge premiums based on that risk. It also represents the chance of a client filing an insurance claim during his/her coverage.

How do one calcute that? What factors goes in there and how much weight each one has?

Hi credithungry,

Insurance scores are not widely used and most insurers check the credit scores before giving insurance. There are certain insurance companies which use different models to calculate your insurance score, and this may vary significantly. Some of the factors which can be used to decide your insurance score may include your claim history, your payment history, how frequently you have switched your insurer or whether or not you were uninsured for a period of time.

Thanks

Thank you