Farm Bureau Insurance of Michigan offers the FB Advantage Discount for Homeowners and Personal Auto Insurance policies. Eligibility for the FB Advantage Discount is based upon an insurance score which is determined by an individual's credit report and insurance history.
Leading insurance companies in Michigan use insurance scores for auto and homeowners insurance. This is because individuals with certain financial characteristics on their credit report are less likely to submit claims.
Insurance companies decide what rate to charge based upon the potential for loss. They consult several sources for underwriting information to help them make the best decisions.
The Fair Credit Reporting Act (FCRA) is a statute that allows use of an individual's credit history for specified reasons. These include the underwriting of insurance and account reviews to determine if a consumer meets the terms of the account. Michigan law also allows the use of credit information for insurance pricing.
Farm Bureau Insurance of Michigan is filed with the Department of Insurance and Financial Services (DIFS) to use insurance scores in this way.
Although there is no intuitive link between credit reports and claims, industry studies have proven a statistical correlation between insurance scores and loss experience. People with lower insurance scores are more likely to submit claims.
A credit score and an insurance score are two different things.
Credit scores predict how people will pay their bills. Insurance scores predict the likelihood people will submit claims.
Improve your insurance score by:
- Paying bills on time
- Maintain low balances on credit cards
- Only open new credit accounts as needed
- Get rid of credit cards you no longer use
Bankruptcies, several open accounts, and large amounts of debt will decrease your score.
You can request a free copy of your credit report once every 12 months.
For Personal Auto, Homeowners (including Renters and Unit-Owners), Mobile Homeowners, and Lake Estate® new business and renewals effective prior to 7/1/19:
Contact Equifax: Toll free (877) 322-8228 | www.annualcreditreport.com
For Personal Auto new business and renewals effective after 7/1/19:
Contact Experian: Toll free (877) 322-8228 | www.annualcreditreport.com
To dispute inaccurate information in your credit report, contact the credit reporting agency or LexisNexis.
Contact LexisNexis: Toll free (888) 497-0011 |https://consumer.risk.lexisnexis.com/request
When requested, LexisNexis sends copies of consumer reports recently ordered for an individual. Insurance companies other than Farm Bureau may have ordered these reports. Contact LexisNexis with questions about the reports you receive. Future credit reports containing the information in question will include your filed statement.
Please note, neither LexisNexis nor credit reporting agencies makes decisions on eligibility for the FB Advantage Discount. For questions about eligibility, please contact your agent.
An insurance scoring model determines your score by analyzing your credit report.
Elements taken into consideration include:
- How long accounts are established
- Public records (collections and delinquencies)
- Recent account openings
Insurance scoring does not factor income, gender, marital status, race, religion, or age. Considerable strategy and investment went into developing the algorithm used to produce the insurance scores. The algorithm is proprietary and is not released to the public. It has, however, been shared with the state insurance regulators.
FB Advantage Discount Eligibility
The obtained scores are applied uniformly to everyone. Farm Bureau Insurance of Michigan decides which scores qualify for the FB Advantage Discount based on our loss experience. This discount is provided for insureds who have an insurance score that reflects this reduced claim potential.
If a person does not qualify for the FB Advantage Discount, it does not mean the individual has poor credit. If your credit report has been affected by certain events and you do not qualify for the discount, you may be eligible to request an exception. View more information on reasonable exceptions due to extraordinary life circumstances.
The scoring models for insurance scores are different in Homeowners versus Personal Auto. Your scores and discounts can vary since two models are used for the two different lines of business.
For a full list of available discounts and ways to save, view our policy discounts page.
To find out which discounts you are eligible for, contact your agent. Your trusted advisor will review your policies and provide the best savings.