Reader question:

I was informed that the high rate that I got on my car insurance rate premium was because I have a bad insurance score. What is that and how do I find out about it?

Andy

Good question.

An insurance score is something that is a lot like your credit score. In fact, they are mainly based off of the same thing: your credit report. Although the insurance score uses the information here differently to decide what your car insurance rate should be, it is the same base information. It is also true that your credit report is not the only thing involved in the process. Also to be considered are such wide things as your driving history, any past car insurance claims, your history with different car insurance companies involving voluntary and involuntary cancellations or nonrenewals, and so on. However, the credit report has the biggest impact, so if you want to know what your car insurance rate will look at, take a look there first.

Most people aren’t aware of the insurance rating score as much as they are of their credit report, so it wouldn’t occur to the majority of people that they need to watch it and take care of it the same way they do a credit score. Normally, they don’t know they have one until they find out that it sucks.

If you want to know about some of the biggest information that goes into the decision of your car insurance rate score, then you should order a C.L.U.E. report. C.L.U.E. means comprehensive loss underwriting exchange, and its purpose is to provide information about all of your consumer claims info that has happened over the past half decade. This si what the car insurance companies are looking at, so if you want to know what’s on their minds, you should definitely get one of these.

Cheers,

Fashun Guadarrama.