Last Updated on October 26, 2026 by Syed Sarim Naqvi
A credit-based insurance score is a number built from your credit report that insurers use alongside claims history to price auto and home policies, and FICO estimates about 95% of auto insurers use one where allowed. The catch is that a poor score can raise premiums even for a clean driver: a 2021 Consumer Federation of America study cited by SmartAsset found safe drivers in Washington State with poor scores paid 79% more.
Key Takeaways
- Insurance scores run 200 to 997 for LexisNexis Attract and 100 to 900 for FICO, and a higher score generally means lower premiums
- Credit scores predict whether you will be 90 days late on a payment, while insurance scores predict whether you will file costly claims, per Experian
- California, Hawaii and Massachusetts prohibit insurance scores in auto pricing, with Michigan restricting them in several sources, while California, Massachusetts and Maryland ban credit use for home rates
- Insurers pull credit with a soft inquiry that does not affect your credit score
- You generally cannot see your insurance score yourself, though your FICO score gives a rough idea
What Is a Credit-Based Insurance Score?
SmartAsset says auto and home insurers use your credit report to calculate an insurance score that, with claims history and other information, helps decide what you pay, and that most insurers use scores from LexisNexis Risk Solutions and FICO. Experian explains these scores differ from the credit scores creditors use: credit scores try to predict the likelihood of a 90-day late payment in the next 24 months, while insurance scores try to predict the likelihood of claims that cost more than the premium collected. Bankrate says the scores are confidential and proprietary but built from the same information as FICO scores.
What Goes Into It?
CreditSaint says the same factors that affect a FICO score, payment history, outstanding debt and credit history length, shape the insurance score, and that late payments hurt both. Another guide says the weighting is different from a FICO score: Experian notes both consider similar behavior, so a high credit score usually means a high insurance score. The sources describe the factors in general terms, so no exact weights are given here.
| Item | Credit Score | Insurance Score |
|---|---|---|
| Predicts | Late payment within 24 months | Claims costing more than premiums |
| Range | Standard credit score scales | FICO 100 to 900; LexisNexis 200 to 997 |
| Visible to you | Yes | Usually not |
| Inquiry type | Hard or soft | Soft inquiry by insurers |
How Much Can It Change Your Premium?
SmartAsset reports a Consumer Federation of America study from 2021 that found safe drivers in Washington paid 79% more with poor insurance scores. Bankrate says drivers with excellent credit in Michigan paid 59% less for auto insurance than those with poor credit, though that comparison dates from before Michigan’s restrictions. CreditSaint adds that a lower score can lead to higher premiums even with a clean driving record because insurers use both factors independently. The size of the effect varies by state and insurer.
Which States Limit It?
Bankrate says California, Hawaii and Massachusetts prohibit insurance scores in auto pricing and California, Massachusetts and Maryland ban credit information in home pricing. CreditSaint, The Zebra and an ABC affiliate guide list Michigan alongside California, Hawaii and Massachusetts for auto, while Bankrate says Michigan insurers can use credit information, and Experian lists Washington among states that limit use. Washington’s insurance commissioner’s office once described a temporary ban on credit scoring in premiums, so rules change. Check your state’s current law.
What Can You Do?
- Pay on time: late payments hurt both scores
- Limit new credit: one guide advises fewer new applications
- Check your report: insurers use the credit file, so errors matter
- Ask about weighting: some insurers de-emphasize insurance scores
- Use discounts: SmartAsset says discounts can offset a poor score
How Does This Connect to Other Cover?
Auto topics are in Uninsured and Underinsured Motorist Coverage Explained, Non-Owner Car Insurance and SR-22 Explained and Gap Insurance Explained. Home topics are in Renters Insurance Explained and Hurricane and Wind/Hail Deductibles Explained. See also Identity Theft Insurance Explained.
FAQ
What is an insurance score?
A number from your credit report that predicts claim risk and helps set premiums.
Is it the same as my credit score?
No, but it uses the same underlying credit data with a different formula.
Does a quote hurt my credit?
No. Insurers use soft inquiries.
Which states ban it for auto?
California, Hawaii and Massachusetts, with Michigan listed by several sources.
Which states ban it for home?
California, Massachusetts and Maryland, per Bankrate.
Can I see my insurance score?
Usually not; they are generally not available to consumers.
How much can it matter?
A 2021 study found 79% higher premiums for safe drivers with poor scores in Washington.
Glossary
- Credit-based insurance score: a credit-derived score predicting claim risk.
- Soft inquiry: a credit check that does not lower your score.
- LexisNexis Attract: an insurance score model from LexisNexis.
- FICO InScore: FICO’s insurance score model.
- Underwriting: the insurer’s process of assessing risk and price.
Sources
- SmartAsset: What Is an Insurance Score? (score ranges, 79% study, state list)
- Bankrate: Insurance Score (auto and home bans, Michigan comparison)
- CreditSaint: How Does Your Credit Score Affect Your Car Insurance? (soft inquiry, four states)
- Experian: How Much Does Your Credit Score Affect Auto Insurance Rates? (predicts claims vs 90-day late)
- Washington Office of the Insurance Commissioner: Credit Scoring Guidance (state rules and temporary ban)
- FinHabits: How Credit Score Affects Car Insurance Rate (95% of insurers, NAIC reference)
- The Zebra via The Garden Island: The Credit Score Your Insurer Uses Isn’t Your FICO (95%, availability to consumers)
Related reading: Umbrella Insurance Explained · Motorcycle Insurance Explained · Landlord Insurance Explained
Published October 2026. State laws on credit-based scoring change often and sources differ on some states; always confirm your state’s rules with its insurance department, and refresh this article periodically.
Leave a Reply