Are auto insurance rates determined by credit score instead of driving record?

April 16, 2016

Auto insurance rates are determined by BOTH Credit Score AND Driving Record in addition to other important factors. An "Insurance Score" [1](similar to credit score) is the what the insurance industry uses in the rating of home and auto insurance. In states where insurance scores are allowed, it is a significant factor in the determining what you pay for auto Continue Reading

Auto insurance rates are determined by BOTH Credit Score AND Driving Record in addition to other important factors.

An "Insurance Score" [1](similar to credit score) is the what the insurance industry uses in the rating of home and auto insurance. In states where insurance scores are allowed, it is a significant factor in the determining what you pay for auto insurance.

Most companies use a complex formula that combines a person's Insurance Score along with their driving record and other factors to determine your final rate. Your insurance score is a large factor in determining your base rate. [2]

Is having good credit better than having a good driving record?

Each company has unique rating schemes that will weigh factors differently.

However, it is my experience that having great credit (or insurance score) with a fair driving record is better than have a fair insurance score and a great driving record. So, on balance, a great insurance score is better than a great driving record.

In order to get the best insurance rates possible, strive to improve both your insurance score and driving record. The following link provides more information on strategies to reduce your car insurance premiums.

Best of luck with improving your insurance score, driving record and lowering your car insurance rates!

Footnotes
[1] Credit-Based Insurance Scores
[2] investopedia.comHow An Insurance Company Determines Your Premiums | Investopedia

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.