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


2. Experian


3. Trans Union


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

I want to say thank you to Jackson Insurance for the many years of service. They have been there for me through many life changes and I have trusted them to make sure my family is protected. They have treated me like family and have taken care of all my insurance needs. Thank you again, I look forward to many more years with you.

Michael W. Loganville, GA

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