Questions About "Insurance Score"

1 Reply

I've been considering switching insurance carriers, because my rates with State Farm keep creeping slowly upward.  I contracted a friend who runs a local Farmer's Insurance Agency for some quotes.  After running my info, he responded with much higher rates than I expected to hear.  He explained that it seemed to be my "insurance score" that is causing the higher premiums.  This is an excerpt from his email:

Clearly, we're not competitive with what you're paying now. For what it's worth, it appears your "insurance score" (which, typically, closely mimics your credit score) is having a negative impact on the premium. Obviously, you have a great credit score. And, unfortunately, I don't have access to the factors that create the insurance score. I do know that Farmers separates clients into three tiers (Preferred, Standard & Non-Standard) based on their prior insurance habits and insurance score. For some reason, you guys are coming up as Non-Standard. 

I've been trying to figure out what would cause this.  We have only had two insurance claims in the past decade, and neither was remotely "frivolous."  

  • Tree fell on a rental property roof
  • Wife's car sustained $7,000 in hail damage, because employer won't pay for covered airport parking

Is this enough to make our premiums so much more expensive?  Is there a way to check/fix your insurance score, like a credit score?

@Jesse Smith Good question. Your insurance credit report or "Clue Report" may be showing information twice or information that is not true. The best way to do this is to request a copy of your Lexis Nexis Clue report and then Dispute any untrue information from your report.