What is an auto insurance score?
An auto insurance score is a number based on your credit history and other factors that insurers use to help predict the likelihood of future claims—and set your premium in Colorado and Utah.
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Complete Guide to Auto Insurance Scores
Why This Question Matters for Colorado and Utah Residents
If you’re shopping for auto insurance in Colorado or Utah, your insurance score can make a significant difference in your premiums—sometimes by more than 90%. Understanding how insurance scores work helps you unlock savings and avoid surprises.
- Major impact on rates: In Colorado, drivers with excellent insurance scores can pay up to 92% less for auto insurance than those with poor credit. A difference of over $1,700 per year isn’t unusual in urban areas like Aurora and South Salt Lake.
- Legal and transparent process: Both Colorado and Utah allow insurers to use insurance scores when setting rates, but only when models are filed with—and approved by—the state. Insurers can’t use these scores as the only reason to deny coverage.
- Local risks affect everyone: Severe weather in Colorado and urban theft clusters in Utah can cause claim rates to spike, but your insurance score remains a key pricing lever—often more influential than driving history alone.
What Most People Get Wrong
Many people think an insurance score is just your credit score. While it’s based on your credit history, your insurance score also blends in other factors like payment history, outstanding debt, and sometimes even your claims record. It is not the same number lenders see.
Another common myth: If you have a poor insurance score, you can’t get auto insurance. Not true—in Colorado and Utah, there are many carriers and even state-supported options for high-risk drivers. Your score simply affects your pricing tier and available discounts.
The Complete Picture
Your auto insurance score is a number calculated by insurance companies to help predict how likely you are to file a claim. Most often, it’s heavily influenced by your credit history—on-time payments, low balances, and a long credit record work in your favor. Insurers use proprietary formulas, so the exact score may differ by company, but the core elements generally involve:
- Payment history (on-time vs. late)
- Outstanding debt vs. total available credit
- Length of credit history
- Types of credit accounts
- Recent inquiries
For Colorado and Utah drivers, a better insurance score can mean premiums up to $1,700/year lower for the same car and driver profile. For example, State Farm may offer $461/year for excellent credit, while the same profile with poor credit could pay $2,241/year—a 386% difference.
Both states require insurers to use scores fairly and regularly review their models. If your score improves, you’re generally eligible for lower rates at renewal. And remember: insurers cannot raise your rate mid-policy solely due to a credit drop or insurance score decrease.
Making the Right Decision for Colorado and Utah Residents
Question 1: How much does my insurance score affect my premium?
Insurance scores are a major pricing factor—sometimes more than your driving record itself. For example:
- Drivers with excellent credit in Colorado average $1,171/year for coverage; drivers with poor credit pay up to $2,241/year.
- In urban Utah zip codes, premiums may rise over $1,000/year for drivers in lower score bands.
Check with your independent advisor how your score influences quotes across different carriers—many regional insurers offer flexible pricing for local residents.
Question 2: What can I do if my insurance score is low right now?
Not all insurers weigh scores the same—or at all. Some regional carriers in Colorado and Utah both use alternative pricing models, so shop around. If you have a recent financial setback, ask about exceptions or underwriting appeals. And focus on quick wins:
- Pay bills on time (even one late payment can drop your score significantly)
- Reduce credit card balances below 30% of their limits
- Avoid new hard inquiries before shopping for insurance
Question 3: Will improving my score really lower my rates in the future?
Yes, especially in Colorado and Utah—where regulations require regular re-rating. If your score improves before your next renewal, notify your agent and request a re-quote. Many drivers have seen savings of $400 or more per year after improving payment history.
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Real World Examples
Tonya’s Story: Credit Improvement Pays Off in Fort Collins
Background: Tonya, a teacher in Fort Collins, had a credit hiccup from unexpected medical bills and saw her insurance premiums spike to $2,050/year for full coverage.
Coverage: Standard 25/50/15 liability, $500 comprehensive and collision deductibles.
Monthly Premium: $171/month ($2,050/year)
The Incident: After two years of on-time payments and reducing her credit card balances, Tonya’s insurance renewal quote dropped to $1,220/year—a savings of $830.
Total Claim Cost: N/A—No claim filed; impact was on her premium due to underlying insurance score improvement.
Tonya's Cost: $0 for this incident, but the next year’s premium reflected significant savings—directly tied to her improved insurance score.
“I never realized just paying my bills on time and cleaning up old debt could save so much—my agent showed me how credit and insurance scores play together. Now I keep an eye on both!”
Marcus’ Experience: Salt Lake City Rate Shock
Background: Marcus, an IT specialist in Salt Lake City, moved downtown and financed a new car. Not knowing his insurance score was below average, he was quoted $2,910/year with a national carrier.
Coverage: Full coverage with $1,000 deductibles.
Monthly Premium: $242/month ($2,910/year)
The Incident: Frustrated by the high rates, Marcus compared regional carriers and discovered a Utah-based insurer that considered his on-time payment improvement over the past year. He switched at renewal and dropped to $1,850/year—saving $1,060 annually.
Total Claim Cost: N/A—no claim, but shopping around netted major premium savings just by leveraging how different companies weigh insurance scores.
Marcus's Cost: $0 out-of-pocket; proactive shopping brought big savings without coverage changes.
“I thought I was just stuck paying more, but my agent explained how every company scores things differently—shopping around really made a difference!”
Leah’s Lesson: Aurora High Premiums, High Rewards
Background: Leah, a recent college grad in Aurora, Colorado, had limited credit history and a single late payment. Her initial quote for minimum coverage was $2,100/year.
Coverage: Minimum required 25/50/15 liability, no comprehensive/collision.
Monthly Premium: $175/month ($2,100/year)
The Incident: Determined to improve her insurance score, Leah paid all bills on time and issued a secured credit card to build positive history. By her second year, her insurance score improved, and her renewal dropped to $1,450/year—a $650 savings.
Total Claim Cost: N/A (no claim)—the financial reward came from a lower premium, thanks to her diligence with credit habits.
Leah's Cost: No claim cost—her effort directly slashed her insurance bill every month.
“I thought auto insurance rates would always be high for me, but a few smart credit moves really changed my budget. My advisor helped me track my progress, too.”
Avoid These Common Mistakes
Mistake #1: Assuming Your Credit Score and Insurance Score Are the Same
What People Do: Many Colorado and Utah drivers look at their credit score and assume it’s the only number that matters for insurance companies.
Why It Seems Logical: Since both scores use similar data from credit reports, it’s easy to think they're identical—or that the same credit fixes will instantly improve your insurance rates.
The Real Cost: An insurance score blends credit info with other factors and weighs them differently. Even with a solid credit score, a recent insurance lapse or multiple claims can push your auto premiums hundreds of dollars higher.
Smart Alternative: Ask your advisor how the insurer calculates its score, and review both your credit and insurance profile before shopping. FoCoIns can help clarify which carriers are most flexible for your unique situation.
Mistake #2: Thinking a Low Insurance Score Means You Can’t Get Coverage
What People Do: Drivers with past credit issues or insurance gaps sometimes fear they’ll be denied auto insurance—or that their only option is high-cost, last-resort insurance.
Why It Seems Logical: Some carriers do offer their best pricing only to customers with strong insurance scores, and news stories often highlight problems with coverage denial elsewhere.
The Real Cost: In Colorado and Utah, state law ensures you have access to coverage and prevents score-based denials as the sole reason. If you don’t shop around, you may overpay by $1,000/year or more.
Smart Alternative: Have FoCoIns compare a wide range of local and regional carriers—the right fit could keep you insured and save you hundreds every year, even with a challenging score.
Mistake #3: Ignoring Other Rating Factors Besides Insurance Score
What People Do: Some consumers focus only on their insurance score and neglect other pricing factors, like claim history, location, vehicle, and annual mileage.
Why It Seems Logical: The emphasis on credit and insurance scores in media and ads can make them seem like the be-all and end-all for pricing.
The Real Cost: You might miss out on valuable premium discounts (like safe driver or telematics discounts that save up to 15%) or overpay because you haven’t bundled home and auto despite having a lower score.
Smart Alternative: Work with a FoCoIns advisor to optimize all rating factors, not just your insurance score. A smart strategy can sometimes cut costs more than a credit improvement alone.
FAQs On The Same Topic
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