Back to Articles

What are Insurance Scores and Do They Affect Your Auto Insurance Rates?

Ever wondered why your friend with a "clean driving record" pays more for auto insurance than you? It might have something to do with insurance scores. But what exactly are they, and how do they impact your rates?

Insurance scores, also known as credit-based insurance scores, are numerical ratings based partially or entirely on your credit history. Insurance companies use these scores, along with other factors, to assess your risk as a driver and determine your auto insurance premium. However, it's important to note that:

  • Not all companies use insurance scores: Each insurance provider employs its own unique underwriting process, and some may not consider your credit history at all.
  • It's just one piece of the puzzle: Aside from your credit score, factors like your driving record, vehicle type, and even your location play a significant role in determining your premium.

Does having a good credit score guarantee lower insurance rates?

While good credit can lead to lower premiums, it's not always the case. Remember this:

  • Potential for Savings: In some cases, good credit scores have resulted in lower premiums for individuals.
  • Not a Universal Factor: Credit score isn't considered in every instance. Sometimes it had no impact on the final premium.
  • The Bigger Picture: Remember, your driving record, vehicle details, and even location play significant roles in determining your rates.

So, while insurance scores can be a factor, don't let them hold you back! At UHCU Insurance Services, we offer:

  • Competitive Rates: We work hard to secure affordable coverage options, regardless of their credit score.
  • Personalized Quotes: Get a free, personalized quote from UHCU Insurance Services that reflects your unique situation, not just a single number.

Ready to find the right auto insurance for you? Contact UHCU Insurance Services today at 512.435.4555 or click here! We'll help you navigate the world of insurance scores and find the coverage you need at a price you can afford.

UHCU Insurance Services, LLC is a Credit Union Service Organization. Business conducted with UHCU Insurance Services, LLC is separate and distinct from any business conducted with United Heritage Credit Union, its parent Credit Union. Insurance products offered by UHCU Insurance Services, LLC are not (i) deposits of United Heritage Credit Union, its parent Credit Union or its partner Alloy Insurance Partners, therefore are not protected by the NCUA and are not exclusive to Credit Union members and (ii) an obligation of or guaranteed by UHCU Insurance Services, LLC, its parent Credit Union or its partner and may be subject to risk. UHCU Insurance Services offers coverage for Texas residents only. Any insurance required as a condition of an extension of credit by United Heritage Credit Union need not be purchased from UHCU Insurance Services, LLC and may be purchased from an agent or insurance company of the member’s choice.

What are Insurance Scores and Do They Affect Your Auto Insurance Rates?
Insurance Your Money