Insurance Score
A credit-based score most carriers use to set your premium — different from your FICO credit score.
Most insurance carriers use a "credit-based insurance score" derived from your credit report to help set your premium. This is NOT the same as your FICO score, though it pulls from similar data. Studies have shown a strong statistical correlation between credit history and the likelihood of filing claims, so carriers use it as a major rating factor for auto and home policies.
Three states currently prohibit using credit for insurance pricing: California, Massachusetts, and Hawaii. Illinois, Indiana, and Wisconsin all allow it.
The good news: improving your credit score over time will lower your premiums at renewal (usually within 6-12 months of the change). The bad news: a recent bankruptcy or accumulated late payments can dramatically raise rates regardless of your driving record.
If you've had a major life event affecting your credit (divorce, medical emergency, identity theft), some carriers offer a one-time "extraordinary life circumstance" exception. Ask Geneva to check.
Related terms:Premium·Underwriting
Related Geneva services:Auto Insurance·Home Insurance