How the Use of Consumer Reports Affects Your Insurance Premium

Thank you for choosing Farm Bureau Insurance of Michigan for your insurance needs. Insurance companies decide what rate to charge based upon the potential for loss. Insurance companies consult a number of sources for underwriting information to help them make better, more informed decisions about the potential for loss.

Industry research and company claims experience shows that individuals with certain financial characteristics on their credit report are less likely to submit claims. We provide the FB Advantage Discount for insureds with a credit-based insurance score that reflects this reduced claim potential.

Farm Bureau Insurance offers an FB Advantage Discount for homeowners and personal automobile insurance for eligible individuals.

Eligibility for the FB Advantage Discount is based upon an insurance score that is developed from certain financial characteristics found in an individual’s credit report. The use of consumer reports is subject to State and Federal regulation. Farm Bureau Insurance of Michigan complies with all statutory requirements for the use of consumer reports.

Farm Bureau does not receive a copy of an individual’s credit report.  We receive only the insurance score and up to 4 reasons LexisNexis (a consumer reporting agency) identifies as having the most negative impact on the final calculated insurance score. We do not receive a credit score or the details of the credit report. Certain characteristics known as reason codes* from the individual’s credit report are considered in the development of that person’s credit-based insurance score. Some of the characteristics considered are: amounts owed, number of creditors owed, payment patterns, utilization of credit, bankruptcies, foreclosures, bad debts, and recent account openings. The following characteristics are not used in determining an individual's insurance score: income, net worth, nationality, gender, marital status, religion, location, race, or age.

For a list of *reason codes, please click on one of the following applicable links:

Personal Auto new business and renewals effective before 7/1/19

Personal Auto new business and renewals on or after 7/1/19

Homeowners