Missouri auto insurers use of credit scoring
| Name of company | Does it use credit? | If so, how is it used? |
|---|---|---|
| State Farm Mutual Insurance Co. (NAIC No. 25178 ) |
Yes | State Farm uses an automobile insurance risk score based on auto claim history and certain consumer credit information to help determine, along with other factors, if new business is eligible for State Farm Mutual or State Farm Fire and Casualty Company. In addition, an automobile insurance risk score is one of many factors that determine the rate charged to a new business policy. State Farm only uses consumer credit information to initially rate a vehicle. |
| American Family Mutual Insurance Co. (NAIC No. 19275) |
No | The company does not use credit scores to make a decision whether to accept, deny, renew, non-renew, or increase the amount of benefits payable or types of coverage under the contract. |
| Farmers Insurance Co. (NAIC No. 20253 ) |
Yes | Farmers uses an Insurance Bureau Score to provide its customers a discount on their insurance premium. The amount of discount varies, depending on the customer's credit score. The vast majority of Farmers' customers receive discounted insurance rates based on their credit score. In addition to discounting premium based on credit score, other criteria are also considered including vehicle make and model, policy limits, deductibles, and other discounts. Once a customer is with the company, Farmers will generally not raise an insured premium based solely on a customer's credit score deteriorating. Instead, in the vast majority of circumstances, customers are more likely to benefit from a change in credit score. |
| Shelter Mutual Insurance Co. (NAIC No. 23388) |
Yes | Shelter uses a "tiering system" based on credit scores, years policy has been in force, accidents, violations, policy term, limits and prior insurance to determine the tier. The tiers are then used with vehicle make and model, limits, discounts and deductibles to get the final premium |
| Allstate Property & Casualty Insurance Co. (NAIC No. 17230) |
Yes | Allstate places applicants into one of five "insurance financial stability groups," depending on the credit score. These groups along with policy limits determine the amount of the discount or surcharge for each coverage rate. |
| Auto Club Inter-Insurance Exchange aka AAA (NAIC No. 15512) |
Yes | AAA uses a "financial responsibility score" as one of the factors used to rate an insurance risk. This could result in a discount or surcharge. Additional factors used in determining a customer's rate would include vehicle make and model, policy limits, deductibles, claims history and other discounts. |
| Farm Bureau Town and Country (NAIC No. 26859 ) |
Yes | Farm Bureau uses loss scores to apply either a discount or a surcharge. These rate adjustments apply to bodily injury liability, property damage liability, medical payment, comprehensive and collision. |
| Progressive Preferred Insurance Co. (NAIC No. 42994) |
Yes | Progressive uses "underwriting tiers" made up of prior insurance information, number of claims and a credit score. The tier determines the discount or surcharge applied to the coverage. Policies are re-tiered every two years. |
| United Services Automobile Association or USAA (NAIC No. 25941) |
Yes | USAA uses claims, violations, credit scores, driving experience and prior insurance to place the applicant into one of three tiers. The third tier is for the riskiest type and is rated differently. All tiers affect the amount of discount given on each coverage. |
| Cameron National Insurance Co. (NAIC No. 42498) |
Yes | If applicants have an insurance credit score of "superior" or excellent," they will qualify for this company. If the score is lower, they will be placed into the more expensive Cameron Mutual Insurance Co. |