CARFAX Vehicle Build Score Revolutionizes Auto Insurance Risk Assessment
CARFAX, a leader in vehicle history data, and Pinnacle Actuarial Resources, a renowned actuarial consulting firm, have jointly developed an innovative rating system called the CARFAX Vehicle Build Score. This new score is designed to modernize and replace traditional vehicle symbols used in auto insurance risk assessment.
The CARFAX Vehicle Build Score utilizes the complete 17-digit Vehicle Identification Number (VIN) to provide insurers with precise vehicle valuation and specific attribute insights. By leveraging CARFAX’s vast database of over 36 billion records, the score analyzes vehicle loss experience at the component level, eliminating the need for yearly symbol updates.
Key Features of the CARFAX Vehicle Build Score
- Precise Vehicle Valuation: The score incorporates a proprietary vehicle valuation model that provides current market values, preventing both over and underpricing of insurance policies.
- Detailed Risk Assessment: It offers insights into factory and post-factory installed features, helping insurers better understand risk and price policies more accurately.
- VIN-Level Details: Designed for both personal and commercial auto insurance markets, the score provides unmatched details at the VIN level, making it easy to integrate into existing rating models.
Benefits for Auto Insurance Companies
The CARFAX Vehicle Build Score helps insurers refine their rating process by providing precise vehicle valuations and component-level risk assessments. This not only prevents pricing inaccuracies but also eliminates the administrative burden of yearly symbol updates.
“The existing practice of utilizing symbols does not reflect an understanding of a specific vehicle’s bumper-to-bumper configuration,” said Don Hendriks, Director of Insurance Analytics at CARFAX. “The CARFAX Vehicle Build Score leverages our database to provide insights into a specific vehicle’s features, helping insurers better understand risk.”
Pinnacle Managing Principal Roosevelt Mosley added, “For insurers, the Vehicle Build Score is an evolution towards a more advanced approach to symbols and the rating process. Our partnership with CARFAX allows us to translate detailed vehicle data into actionable risk assessments via a simple score.”
Current Status and Future Availability
The CARFAX Vehicle Build Score is currently being filed and approved by state regulators across the United States. Insurance companies can integrate it into their existing rating models once approved in their operating states.
For more information about the CARFAX Vehicle Build Score, visit CarfaxForInsurers.com.
About CARFAX and Pinnacle Actuarial Resources
- CARFAX: Part of S&P Global Mobility, CARFAX is a leading provider of vehicle history information, helping millions of people confidently shop, buy, service, and sell used cars.
- Pinnacle Actuarial Resources: An independent, full-service actuarial firm focused on the property/casualty insurance industry, Pinnacle is owned by its professional staff and ranks among the largest property/casualty actuarial firms in the United States.
