During the rating process, the Vehicle History Score is designed to allow carriers to further segment risk, based on the vehicle's history (e.g. number of owners, odometer reading and vehicle condition), allowing carriers to offer more competitive rates, while managing their risk.
The score also is beneficial during the underwriting process, the company notes, enabling insurers to better assess the risks of the specific vehicle being underwritten. The score can help carriers determine risk-tier placement or determine eligibility for more aggressive down-payment options, TransUnion adds.
The Vehicle History Score returns a numerical score of 150 to 950 within an average of two seconds of the request, and insurers only need the VIN for a vehicle from 1981 or later upon input, says TransUnion, adding that the score is based on predictive characteristics, including ownership, accident and repair history.
The CARFAX database contains more than 8 billion records and data from more than 34,000 data sources, including every U.S. and Canadian motor vehicle agency, fire and police departments, collision repair facilities and fleet management and rental agencies.
