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My auto insurance score on Credit Karma is 805. It also says insurability is poor. I was wondering if there is a way to improve that score? I have never had an accident and I am never late on my payments.

  • How old are you? – MrChrister Nov 21 '11 at 19:39
  • 31. I came to US like 5 years back and thats when i got my first US license as well. – Asdfg Nov 21 '11 at 22:20
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    My insurance score on Credit Karma is around 750. However, Insurability shows 'good'. How do they determine this? They dont have any details about my car, only my SSN. – f1StudentInUS Nov 22 '11 at 5:43
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  • Move to a small town in an insurance friendly state. - Certian states like Florida are considered high risk for doing business for insurance companies.

  • Get a (relatively)new midsize sedan in white, tan, or brown. These colors are the least likely to get stolen and the modern midsized sedan is considered the safest vehicles to drive.

  • Drive less than 100 miles a month - The less you drive the less likely you are to be involved in an accident

  • Go 9 years with no claims, tickets, or late payments and maintain a valid drivers license and Insurance. Drivers who go for long periods with out incident are more likely to be safe drivers.

  • Have an income in upper middle class. Drivers in this bracket tend to be statistically safer drivers and are the least likely to be involved in fraud.

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    Hmmm. I have red sports car and that could be the reason. – Asdfg Nov 21 '11 at 22:23
  • Where does 9 years come from? Is that a thing or just general advice? – MrChrister Nov 22 '11 at 0:02
  • @MrChrister - That's where most insurers minimize your risk. You could potentially get lower after that but its a log function and at 9 years you are basically flat and with most US Companies your rates are not going to go any lower from risk reduction in this criteria. – user4127 Nov 22 '11 at 14:41
  • @Asdfg - By itself the sports car should not make your insurance risk poor. I do not see any other reason to suspect that the classification is accurate based on the information you have provided. If you have not done so already I would get copy of your credit report and make sure that there are no errant entries. It is also possible there is a bug in there system or there is some risk factor that would not be commonly associated with someone who pays their bills, keeps insurance, and is gainfully employed. – user4127 Nov 28 '11 at 13:57
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Auto Insurance score is in no way related to your driving habits, instead it is based on your credit usage. You are often punished for having more than one or two hard inquires in a year and they also frown upon having many lines of credit even though that helps your credit utilization.

  • Can you provide a source that this score has nothing to do with your driving habits? – John Bensin Oct 2 '13 at 21:07
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    @JohnBensin "The auto insurance score—also called a credit-based insurance score—is a three-digit number meant to predict the likelihood that you’ll file an insurance claim. The auto insurance score you receive on Credit Karma ranges from 150 to 950, and it’s calculated using data from your TransUnion credit report. However, it is not the same thing as a credit score. Also, it has nothing to do with your driving record." blog.creditkarma.com/credit-101/insurance-scores/… – mhoran_psprep Oct 2 '13 at 22:49
  • @mhoran_psprep Awesome, thank you. I don't drive, so I wasn't aware of the details. The other answer mentioned driving habits as a relevant factor, e.g. how many miles you drive, so I wasn't sure. Is the information in the other answer, e.g. tickets, miles per month, etc., incorrect? – John Bensin Oct 2 '13 at 23:17
  • @JohnBensin The insurance score from credit karma is used by some companies when determining premiums. The factors in the other answer are also considered weighted by the company. Often big insurers will ask questions about the number of months lived at current residence, etc., which has nothing to do with driving habits, but helps determine stability. – NL - Apologize to Monica Jan 22 '14 at 17:27
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As a recent college grad who switched to his own car insurance, many of the things I did myself are reflected here.

The #1 thing I did was find out what coverages I had, what coverages some friends of mine had (car enthusiasts mostly - they're the most informed on this stuff), and then figured out what kind of coverages I wanted. From there, I went around getting quotes from anyone and everyone and eventually built out a sizeable spreadsheet that made it obvious which company was going to offer me the best rate at a given coverage level.

Something else to remember - not all insurance companies look at past accidents and violations (speeding, etc) the same. In my search, I found some have a 3-year scope on accidents and violations, while others were as much as 5 years.

So, if your driving record isn't a shining example (mine isn't perfect), you could potentially save money by considering insurance through a company that will see fewer violations/incidents than another because of the size of their scope. I ended up saving $25/mo by choosing a company that had a 3-year scope, which was on the cusp of when my last violation/incident occurred.

Insurance companies will also give out discounts for younger drivers based on GPA average. If you have kids and they maintain a high GPA, you might be able to get a discount there. Not all companies offer it, so if they do it's worth finding out how much it is

  • I removed your link because I suspected it might be promotional, and it doesn't improve this answer. Please read here under "Avoid overt self-promotion". – Chris W. Rea Jan 23 '14 at 17:10

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