Top 10 homeowners insurers,
by volume, and their use of credit
(as of December 31, 2004)
Name of company Does it use credit? If so, how is it used?
State Farm (NAIC No. 25143) Yes State Farm uses a combination of prior claim information and credit characteristics to calculate an underwriting score. The underwriting score is used, along with other factors, to help determine if a new applicant is eligible.
American Family Mutual Insurance Co. (NAIC No. 19275) No American Family uses such factors as past losses, liability exposure (dogs, swimming pools, etc.).
Shelter Mutual Insurance Co. (NAIC No. 23388) Yes Shelter uses a tier calculation to rate business. The calculator includes policy term, other policies with Shelter, losses in the last five years, credit score and years policy has been in force. Policyholders are placed into one of six pricing tiers.
SAFECO (NAIC No. 24740) Yes Safeco uses several factors such as protection class, construction type, loss history, and insurance bureau score to determine tier placement.
Mid-Century Insurance Co. (Farmers…NAIC No. 21687) Yes Mid-Century 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, with the top discount at 66%. Mid-Century uses several other factors such as fire protection class, loss history, and other rating factors to arrive at the total premium charged by the company. Once a customer is with company, Mid-Century will not raise an insured premium based on a customer's credit score deteriorating, but will lower a customer's rate based on a better score.
Allstate Indemnity Company (NAIC 17230) Yes Allstate uses several factors such as fire protection class, loss history and credit scores to determine the total premium and placement in the company.
Fire Insurance Exchange (NAIC No. 21660) Yes Fire Insurance Exchange 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, with the top discount at 66%. Fire Insurance Exchange uses several other factors such as fire protection class, loss history, and other rating factors to arrive at the total premium charged by the company. Once a customer is with the company, Fire Insurance Exchange 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.
Farm Bureau Town & Country Insurance Co. (NAIC No. 26859) Yes Farm Bureau uses several factors such as protection class, construction type and credit scores to determine the total premium. Premium adjustments are based on the highest loss score
Auto Club Family Insurance Co. aka AAA (NAIC No. 27235) Yes Auto Club Family uses credit history as one of the underwriting criteria for accepting a policyholder. Additional considerations include construction type, fire protection class and loss exposure.
United Services Automobile Association or USAA (NAIC No. 25941) Yes USAA uses fire protection class, loss history and credit score. The credit score places the applicant in one of three pricing tiers.

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