Originally Posted by SuperDudley

Insurance company's perspective is that you are opening a number of credit cards because you are anticipating using them as a means for living within the next few months. People who rely heavily on their credit cards for living, instead of having cash in the bank, are more likely to file claims. They don't have the means necessary to handle losses out of pocket when the situation arises. That's also the reason why credit (insurance) scoring is a valid loss predictor.

Originally Posted by jeanie

"Number of Accounts Reported Within 6 Months - Industry research shows that consumers with a large number of reported accounts have more insurance losses. Our score considers the number of accounts reported by your creditors within the last 6 months. To improve this aspect of your score, open new accounts only when needed.

Originally Posted by jeanie

I am an Amica customer. Today, I got my insurance renewal in the mail, and it listed the criteria for using insurance scores. They pulled Equifax for me. It said that I could get a free copy of my Equifax report if I disagreed with my renewal premium. I plan on getting the free credit report. Here are the pertinent parts. I am interested to see how people interpret the first paragraph. Do you read it as new accounts in the past 6 months, or all accounts on your credit report?


"Number of Accounts Reported Within 6 Months - Industry research shows that consumers with a large number of reported accounts have more insurance losses. Our score considers the number of accounts reported by your creditors within the last 6 months. To improve this aspect of your score, open new accounts only when needed.

Age of Newest Account - Industry research shows that consumers with recently opened accounts experience more insurance losses. Our score considers how long it has been since you opened your last account. To improve this aspect of your score, consider keeping your oldest accounts active and only open new accounts when needed. In order to achieve the best rating, the age of your most recently opened account must be at least 3.5 years old.

Number of Department Store Accounts - Industry research shows that consumers who open more accounts with department stores experience more insurance losses. Our score considers the number of accounts you have opened with department stores. These accounts can be currently opened or closed. To improve this aspect of your score, open new accounts only when needed, as once you have opened the account and regardless of whether you use it or not, your score will be impacted by this factor.

Percent Open Bankcard Accounts to All Open Revolving Accounts - Industry research shows that consumers who have a higher proportion of open bankcard accounts to open revolving accounts have fewer insurance losses. Bankcard accounts are defined as revolving accounts for banks, bankcard companies, national credit card companies, saving and loan associations and credit unions. Revolving accounts include credit cards and credit lines and are considered open if they have not been reported as closed. Our score considers the number of open bankcard accounts relative to the number of open revolving accounts on your credit report. To improve this aspect of your credit score, consider using fewer sources to obtain goods and services. In addition, be careful not to maintain high balances on bankcard accounts."

Thanks.

Originally Posted by ChickenLilyR6

YES, ME! They hiked my rate 55% though I pay in full upfront, no accidents or tickets, much improved credit etc.

Here are their reasons:
We did not give you our lowest possible premium due to the following information that we evaluated from your credit history: • You applied for credit at least once in the last 2 years, excluding auto or mortgage applications. • You had no auto loans or leases reported opened within the last 10 years. • The average open date of all your reported loans and accounts was less than 8 years ago. • You had a payment past due in the last 7 years. For more information about our review and use of credit, refer to "Why is credit history reviewed and used?" Also, your payment terms are not our most favorable.

Originally Posted by Stgermainparis

....transunion score of 835 put me at a tier 8 (instead of tier 4,

Originally Posted by mia

This does not sound as if it is a FICO score with a maximum score of 850. Do you know what type of score they use?

Did Progressive notify you that your credit score was a factor in the rate increase, or did they only mention it when you contacted them?

Originally Posted by MDtR-Chicago

Insurers often use different models than credit issuers. It's possible to have a high FICO score and a lower score on an insurance industry model.

Here's a myfico thread on Credit Based Insurance Scores (CBIS): https://ficoforums.myfico.com/t5/Gen...ot/m-p/4761583

Originally Posted by Stgermainparis

Seems like nothing I can do to save both churning and insurance rates. Dang.

Originally Posted by Stgermainparis

Thanks for this. Will drill down. Seems like nothing I can do to save both churning and insurance rates. Dang.