I am just learning about the Insurance score. My husband and I just switched our auto and homeowners insurance to a different company at a $700 a year savings.

I got a Notice of Adverse Action from the insurance company notifying us that our policy was offered at a higher premium.

We ordered a credit report from transunion it shows that have never missed a payment. We had four regular inquires into our credit: Apr 2008-We replaced a 22 year old bed and took out a loan for 12 months without interest. May 2006- I took out a loan for a gently used car (got a great deal). April 2007 - We moved our home equity loan to a bank offering a lower interest rate (1 pt below prime). May 2006 - possibly a second inquiry done while I was shopping for a car.

The listed factors which had significant influence on our insurance score are: Number of credit checks - listed above; Accounts opened in the last three years - yes, we look for the best deal on credit because I refuse to pay interest; low credit limits - yes, I like it that way. I got nervous a few years ago when I added up the amount of credit we had out there on credit cards and closed accounts we had forgotten about. High use of available revolving account credit limits. We use one credit card for all expenses except the mortgage and insurance and ALWAYS pay the balance at the end of the month. I don't pay any credit card interest, ever! So why is this effecting my insurance score?

My husband and I have great credit scores. We have a credit history going back to before credit scores and always pay on our bills on time.

I don't understand how our credit habits could flag a higher degree of risk to an insurance company.