Anyone familiar with auto insurance scores?

I can't rationalize why a persons credit scores would have anything to do with the price of their auto insurance. What I found out at an early age it had more to do with: age/gender/marital status/drivers in ones family, and of course ones moving violation and accident records.

Paid unfairly for 9 years because I had nobody in my family that drove/I was single male under 25 years old with ZERO accidents. Was thrown into the "Risk Pool" and was at the mercy of any company that was forced to insure me.

How does $1000 per year sound for $500 deductible? Maybe now, not so bad. I am talking starting in 1955 through 1964. No accidents but 2 speeding tickets when I was 16 years old.

I had friends that lived in small cities outside of ours that wrecked more cars than I bought for many years. They had their "family coverage" and they were paying about $75 per year added to their "family coverage".

Now that I got that out of my system once again! Credit scores in relation to how much a person pays for auto insurance? Since most require paying in advance, what in this world has a credit score got to do with anything?

I don't know how they figure it, but there definitely is an "insurance credit score" for car insurance which is determined somewhat differently from your regular credit score. I found out about it years ago when I got a new credit card with a very low interest rate and moved the balance from another one over to it. I had a very high credit line on the original one, and that was when identity theft was first becoming real news, so I closed that account, thinking that would be the safer thing to do. WRONG!

I learned a valuable lesson about credit scores by doing that. It lowered my total lines of credit and changed the percentage of credit I was using, which not only affected my real credit score, but it was listed as one of the reasons my "insurance credit score" had caused my premium to go up. All I did was get a better interest rate and closed an account, and it made my premium go up!

My insurance agent explained a little about it at the time, but since then, I don't worry about it because they're going to do what they're going to do (being insurance companies). I don't think it affects the premium all that much, so I don't sweat the small stuff.

I never heard of this insurance credit score. Thanks for this interesting thread.

On 11/22/2014 Lynneuk said: I think the thinking is that if you are very responsible with money and can be trusted to repay your debts and make payments on time then you are more likely to be a sensible driver. Makes sense I suppose.

I don't agree they go hand in hand. Many people go into debt for different reasons. They don't all go on shopping sprees, and then don't pay their bills. Same with a hiring an employee/credit check. You can't assume.