The result of auto insurance or home insurance is a three-digit number used to predict the likelihood of a claim being made. It is mostly calculated based on claim history and creditworthiness assessment, which is why it is also called “credit insurance assessment”. Credit information can very much predict future accidents and claims, and that’s why Progressivei most insurers can consider this information when setting rates in most states. What is auto insurance score?
Understanding insurance results
The insurance result is a key component of the total premium paid by the insured for health, home, car and life insurance. Insurance companies partly determine the individual result using the property claims databases, such as the Automated Property Loss Guarantee System (A-PLUS) and comprehensive Insurance Exchange (CLUE).
The insurance result ranges from a low of 200 to a high of 997. An insurance result of 770 or higher is favorable and a result of 500 or lower is bad. Although rare, there are few people who have excellent insurance results. The results are not permanent and may be affected by various factors. There are several ways to increase low results and possibly lower premiums. To start with, the consumer will benefit by improving his creditworthiness and paying bills in a timely manner, as well as reducing debt. In addition, limiting the number of insurance claims made over a given period can help you increase your insurance score.
How can I improve my insurance result?
Here are four tips for safer driving:
- Park in the garage
If possible, park your car in a garage or covered area to avoid damage due to weather conditions.
- The same route every day
The data show that new, unknown roads are not so safe.
- Avoid driving from midnight – 4 am on weekends
This may be the most dangerous time on the road.
- Check the tire tread
Make sure the tires are not worn, because low tread can be dangerous, especially on snow.
While some home insurance claims may not be unavoidable, here’s how you can reduce damage or better avoid certain incidents:
- Fire: Keep a fire extinguisher handy and smoke detectors on each floor. Check frayed wires and electric wires.
- Theft: if you don’t have a security system, make burglars think twice, leaving the light on when you’re away, and make your home look busy. Also make sure that all doors and windows are closed, including the garage.
- Accidents: Keep your pedestrian property safe by making sure the driveway, pavement and steps are well maintained and not icy.
- Wind damage: Patio furniture, tools and toys should be stored if there is a risk of strong winds. Dirt and loose tree branches should be removed.
