Insurance companies use many factors to price your insurance, including your driving record, your claims history, the type of home or vehicle you own, and your credit-based insurance score ("CBIS").

What is a CBIS and why does it matter?

First, your CBIS is not the same as your personal credit score, nor is it a measure of your credit worthiness. The CBIS is a number derived out of your credit history that measures your likelihood of having an insurance claim. Numerous studies have shown conclusively that consumers with higher CBIS scores have fewer and less severe losses. For this reason the CBIS is useful as a rating factor, but it is only one of many that are used.

Why do you need my Social Security number to accurately rate my insurance policies?

To accurately identify you and obtain your CBIS we need your social security number, birthdate and other personally identifiable information. This personal information is kept confidential and guarded according to law (see our Privacy Policy). It is important to note that no one at your insurance agency or at the insurance company has access to the details of your personal credit history. So, if you have questions about your credit report you must contact the credit bureaus (see Credit Report Errors below).

Credit Rules Vary by State

Most states have rules that govern how credit can be used in insurance. Contact your state’s Department of Insurance for the latest information on your state’s rules.

Credit Report Errors

Because your personal credit history affects your CBIS, it is important to regularly review it and make sure that it is accurate. The Fair Credit Reporting Act (FCRA) allows you to order one report for free from each of the major credit reporting agencies each year. You may obtain free of charge your credit file disclosure (commonly called a credit report) from all three credit bureaus once every twelve months at AnnualCreditReport.com . You may also purchase a "3-in-1 report" to review your scores from all three major credit bureaus — Equifax, Experian, and TransUnion. 

 If your credit record is incomplete or has an error, ask the credit reporting bureau to make the corrections. If they can make the change they will notify you in writing or will provide you instructions on how to contact the company related to your request. 

Need a change?

If a material change is completed, please let us know and we can inform the insurance company providing your coverage. Contact us online or at American [at] am-ins [dot] com or at (208) 746-9646 to notify us of any changes or concerns you may have.