Posted On: July 23, 2007, 12:24 pm CDT

Posted By: TruthBeTold

I think one thing I haven't seen in any post is the fact that good insurance scores may actually be a good predictor of your driving habits. The truth is, people generally do not act all that differently in different aspects of their lives. If you are responsible with your money, is it that far of a stretch to believe you will be responsible with your driving?

Yes, some people who are responsible financially will be bad drivers, but on average this does not appear to be true. This does not mean that some of your best insurance scores will not file claims. It does mean that on average they file fewer claims than a bad insurance score. This is not just because they don't file them, some of it is because they simply don't have claims to file.

Also, simply because you have a lot or a little money does not mean you are a good or bad insurance score. The scores measure how you use your money, not how much of it you have. I am not rich, but I have a very good insurance score because I act responsibly with the money I do have. Many wealthy people have poor insurance scores because they overextend their finances.

As for the idea that insurance score only measures whether you will file a claim or not, I doubt this is true. Yes, people with better scores file fewer claims. But they also have better loss experience on liability, which are claims filed against them. In addition, I do not think the simple filing of a claim can account for the experience difference between the best and worst scores, which is dramatic.