Insurance Scores and How They Impact Your Premiums

Georgia homeowner's insurance estimatesYou probably know that your credit history impacts your Georgia homeowner’s insurance estimates, but why exactly might be a mystery to you. How does personal credit relate to insurance rates?

Credit History Basics: How is My Insurance Score Determined?

Your insurance score is calculated mathematically by external credit bureaus. These agencies use specific information about your credit history and credit management to determine your score. Much like credit scores, we can’t know exactly how scoring agencies reach the number that they give to your insurer. However, there are a few things we know for sure.

While scoring agencies are secretive about their formulas, you should know that your Georgia homeowner’s insurance company does not have access to the specific credit information contained in your credit score, or your personal information. That means they don’t base your rate on your race, religion, gender, or marital status – just your insurance score.

How do Georgia homeowner’s insurance companies use my score?

Research has shown that insurance scores are an incredibly accurate predictor of how likely an individual is to file a claim. This is why nearly all insurers use these scores in combination with other factors when writing policies. Essentially, insurers use your insurance score as a way to anticipate the likelihood of a loss.

Take Control of Your Credit Score to Improve Your Insurance Score

Although we don’t know exactly how scoring agencies calculate your score, we know that many of the same factors that impact your credit score impact your insurance score. You can improve your credit score over time by keeping some good habits, like:

  • paying your bills on time;
  • keeping your credit card and other revolving balances as low as possible;
  • only opening new credit accounts when necessary; and
  • checking your credit report regularly to resolve any issues in a timely manner.

You have the legal right to view your credit report and have the reporting company correct or remove any inaccurate information. You can request a free copy of your credit report from one of the following three agencies:

1. Equifax

1-800-685-1111

2. Experian

1-888-397-3742

3. Trans Union

1-800-888-4213

We typically review policyholder insurance scores on an annual basis. If your score could be better, make some changes to your credit management habits and work on improving it. Over time, you may improve it enough to earn better Georgia homeowner’s insurance estimates.

What Our Clients Have to Say

I had acquired a residence that needed homeowners insurance with general liability and had spoken with various other companies but was truly lucky when I came across Nolan Jackson on the Internet. Nolan was thorough, fast with communication and diligent in finding us the best policy for our needs. This extra step is what makes an agent stand above everyone else. He is extremely professional and has a high level of commitment to his clients.

Yvonne S. Tampa, FL

My husband and I had been unhappy with our insurance company for some time, we added security systems to our homes and when we called our insurance company in hopes of getting a better rate nothing changed. We then began our search for a new company.

After sending out several questionnaires from several websites Nolan Jackson Insurance was the first to respond, not only with an upbeat attitude, but he was so helpful in earning our business.

We could not be more pleased with the way in which he has handled all of our questions as well as our needs. His knowledge of his profession, as well as being able to help guide us through what we needed is second to none. His continued customer service is something you do not find often in today’s world typically once someone writes a policy that’s the end of hearing from them, with Nolan it is everything from the original information to making sure that we received all the follow up paperwork for our files.

Liz P. Columbus, GA

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