For those who have watched Dancing with the Stars on TV you likely have noticed the different scores each dancer will receive from the 3 judges. Each judge has a different background and a unique perspective on what makes up a good dance. Len, the head judge, has a background in ballroom dancing and is very technical and stern with his scores. He typically hands out the lowest scoring numbers to the dancers. Tony Bruno is more emotional and can be more influenced by the energy the dancers bring to the dance floor. The third judge, Carrie Ann has a background in Choreography and she may focus more on how the dance flows to the music. How can this judging by different criteria we see on Dancing with the Stars relate to your car insurance?
Car insurance is similar to Dancing with the Stars in that each car insurance company will also have their own unique method of scoring. If you reviewed the scoring models of several insurance companies you would likely see variations to how they arrive at your pricing. One car insurance company may penalize you more for a weak credit report while another may not much place as much importance on your credit score. Another car insurance company may judge the type of car you are driving differently. For instance, if you recently purchased a sports car, such as a Corvette, your current company may assign a higher risk to this type of car then their competitor. As your insurance scoring is based on many variables there will naturally be differences on how car insurance companies measure the risk you carry as a driver.
The judges on Dancing with the stars are transparent in that they will reveal why you received a high or low score. They will also provide feedback as to what needs to be done to improve your scores. Car insurance companies are not as transparent as they only need to meet requirements designated from the State Insurance Office of where you live. Most states will not require insurers to publicize their scoring models, so it will be hard to see how each company rates different variables. Car insurance companies will provide feedback as to how to lower premiums. They will reference basic factors such as good grades, mileage and discounts; however, they will not disclose how they weight important elements such as credit score, driving record and where you live.
The best way to see who will reward your driving profile is to shop around. This is where the really proof in the pudding is. It may be you are currently with a company that scores conservatively, similar to the way Len scores. If you risk profile doesn’t fit this type of scoring you likely will be overcharged on your premiums. This can certainly add up over the course of your monthly or 6 month payments on car insurance. It will only take a few minutes on the internet to receive quotes from several companies. It also makes good sense to review good car insurance coverage to save money on your premiums. Since your risk profile will likely change over time it is also an excellent strategy to get in the habit of shopping every 1-2 years. Finding the insurance company that provides your driving profile will be well worth the effort and will help get your score closer to a perfect 10.