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Get your Auto Insurance Credit Score at Creditkarma.com

Insurance companies work hard to protect their bottom line. They screen the risks presented to them in the form of insurance applicants in order to ensure that the risks they take on don’t outweigh the premiums they collect. Since most insurance underwriters aren’t psychic (and we have no real evidence that ANY insurance underwriters are psychic, but we thought we’d play the law of averages here and allow that a few might be) there is no way for an insurance company to make sure that they are not taking on too much risk – after all, even the safest driver can have an unexpected accident.

In order to try and even the playing field (Sure, more psychic underwriters would be the best way to even the playing field, but is that really a practical business strategy?) insurance companies look to more and more applicant-specific data in order to help them sort the good risks from the bad risks. One of the ways auto insurance companies do this is by checking the credit score of the applicant or checking the auto insurance score. The auto insurance score is derived from a combination of factors including your actual credit score.

Until now, the auto insurance credit score was a bit of a mystery to consumers who were not privy to the proprietary methodology used by insurers to develop the score. Now, an estimate of this score is available on the consumer credit tracking online system, CreditKarma.com.

While CreditKarma.com does not have access to each insurance company’s actual method for creating an insurance credit score, this tool does give you some idea of what to expect and how you are seen in the eyes of an insurance underwriter – which you might appreciate, unless you are psychic.


December 28, 2010



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