Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Insurance
Profile Image

Question By
yousefn

1 Contribution
1 Person Helped
Why is my credit karma TransUnion Auto Insurance Risk Score so low?
I never filed any collision claims whatsoever, 0 points on my driving record and clean histoy at the DMV, age 26 going to be 27 + my credit karma credit score is 762. Explain this 774 insurability:poor ?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-10 of 15Results per page: 5 | 10 | 25Page 1 of 2   Previous | Next
4 Contributions
4 People Helped

Insurance scores are big joke.

Helpful to 3 out of 4 people

My auto insurance score dropped from 907 to 874 right after I had first hard enquirey in 4 years last April. Than this April I had another hard enquirey it dropped from 874 to 865 which is on the low end of good. While my credit in the same time period went from 795 to 793. Why only a 2 point drop in my credit score and 42 point drop in my auto insurance score.  I always pay my credit cards off within 3 days off the charge sometimes the same day. Some credit cards won't let you pay them off only every 3 days and some every day. 

Top Contributor
205 Contributions
1230 People Helped

Helpful to 6 out of 6 people

The insurance score is an absolute joke.  No accidents, no claims, no tickets in over 10 years.  All payments on time, pay credit cards 100%, do not carry any balances on 3 credit cards.  My insurance score, for no apparent reason, took a nose dive from fair (which is ridiculous to begin with) to poor.

I have close to $25,000 credit available on the 3 credit cards I have.

The only thing I can see is that I took out a new car loan for 1/3 the purchase price of the car.  Got a 0% loan from VW Credit.  How would that "damage" my credit?  The car is worth far more than I owe on it and I have no other outstanding debt.

My insurance company just LOWERED my rates by 10% as because of a defensive driving course I took.

1 Contribution
3 People Helped

Helpful to 3 out of 3 people

mine has been decrasing steadily as well. my credit rating is excellent at 792. no accidents no tickts, never late on a payment. this is BS.

1 Contribution
3 People Helped

Helpful to 3 out of 3 people

I really hope that this is one of the "bogus" numbers (not credible) - it makes no sense at all - I have a perfect driving record (late 40's NEVER filed an insurance claim (homeowners or car); no tickets, etc.) My credit score is in the 800's yet I'm only a "fair" insurance risk (850 out of 950 which also makes no sense - shouldn't "fair' be the averge hence around 425???). That's B.S.  I'm super protective of all things "credit related" and this just irks me.

2 Contributions
3 People Helped

Helpful to 2 out of 2 people

Go figure! I have not had a single ticket or accident since 1978! I am a professional driver and make my living driving. 820 score? Really?

1 Contribution
2 People Helped

Helpful to 2 out of 3 people

Same questions/concerns/issues about the insurance score...

No accidents, no tickets, all bills paid on time, and credit score above 780. However, I am rated as "Poor" for the insurance score. Seems like something in scoring / risk model is off.

2 Contributions
2 People Helped

Helpful to 2 out of 3 people

I wish I had an answer for you. My "transrisk" score is 728 and my insurance score is 824. I fail to see how that's "poor" when the scale goes up to 950.  It seems very strange to me. I have a good credit history, no accidents, tickets, etc.  And I have a great insurance rate through Geico. I think their insurance score needs work.

Top Contributor

Reply by
jarena82

62 Contributions
205 People Helped
Helpful to 0 out of 1 people

This may be the best answer I've heard yet...

1 Contribution
3 People Helped

Helpful to 3 out of 5 people

Any insurance score based on credit score fails to stand on it's own merits. If you are going to break down insurability to a number it should be based on accident history and other actual auto related incidents and claims.

Top Contributor
743 Contributions
1809 People Helped

Helpful to 2 out of 3 people

Your insurance score is not created from your driving record. It is built from your credit history. 

2 Contributions
9 People Helped

OH Insurance Agent

No credit reporting agency determines your insurance score. Your insurance score and how it is calculated differs from one carrier to another. An insurance score is an "all-inclusive" rating based on the individual being insured. Part of the factor in determining an insurance score for an insured is their credit score, history, utilization and payment records. But that is only a part of the insurance scoring. Think about it, your financial history and credit play a factor in the likelihood of you filing a claim. Also, a carrier wants to know you pay your bills so that the can "trust" that you'll pay your insurance bill also.

Results 1-10 of 15Results per page: 5 | 10 | 25Page 1 of 2   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.