First Acceptance Insurance Company has received the green light from the California Department of Insurance to utilize the TransUnion Vehicle History Score, developed with CARFAX®, in its auto insurance underwriting process. The approval, granted on February 19, 2021, marks a significant shift in how First Acceptance will assess risk and set rates for its California customers.
Unlike traditional rating plans that categorize vehicles based on factors such as year, make, model, or engine size, the Vehicle History Score provides a more granular view of a vehicle’s risk profile. It predicts the likelihood of future claims by analyzing a vehicle’s unique historical data.
This scoring model, a collaborative effort between TransUnion and CARFAX, leverages a vast database of over 25 billion vehicle history records. However, the California model focuses on information unique to each vehicle, such as ownership details and past usage. Outside of California, the Vehicle History Score considers additional attributes like damage history, mileage, and repair history.
“Vehicle History Score leverages CARFAX’s database of more than 25 billion vehicle history records, helping carriers offer more competitive rates while managing their risk,” said Dan Hill, National Sales Director in the CARFAX Banking & Insurance Group.
Anthony Delaney, Senior Vice President of Product and Underwriting at Acceptance, emphasized the customer benefits: “Rates for Acceptance’s California customers will now include Vehicle History Score, which could save them money on their car insurance. It’s just one more way that we are committed to making insurance affordable. We couldn’t be more proud to be the first company in the state to provide this option.”
This vehicle scoring model is already in use in over 40 other states, but California is the first to adopt it.
