New CARFAX Vehicle Build Score Revolutionizes Auto Insurance Risk Assessment

Rhea-AI Summary

CARFAX and Pinnacle Actuarial Resources have jointly developed the innovative CARFAX Vehicle Build Score, designed to revolutionize auto insurance risk assessment by replacing traditional vehicle symbols. This new scoring system utilizes the complete 17-digit VIN to provide insurers with precise vehicle valuation and specific attribute insights.

The score incorporates a proprietary vehicle valuation model that prevents pricing inaccuracies by delivering current market values. Using advanced modeling techniques, CARFAX analyzes vehicle loss experience at the component level, eliminating the need for yearly symbol updates.

Drawing from CARFAX's database of over 36 billion records, the Vehicle Build Score provides detailed insights into factory and post-factory installed features. It's designed for both personal and commercial auto insurance markets, offering VIN-level details that integrate easily into existing rating models. The score is currently being filed and approved by state regulators across the United States.

Positive

• New Vehicle Build Score provides precise vehicle valuation based on full 17-digit VIN
• Leverages database of over 36 billion records for detailed risk assessment
• Eliminates need for yearly updates to insurance symbols
• Prevents both over and underpricing of insurance policies
• Currently being filed and approved by state regulators across the US

Negative

• Requires integration into existing insurance rating systems
• Still pending regulatory approval in many states

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CENTREVILLE, Va., Feb. 25, 2025 /PRNewswire/ -- CARFAX, the leader in vehicle history data, along with Pinnacle Actuarial Resources, a renowned actuarial consulting firm, have developed an innovative score designed to modernize and replace traditional vehicle symbols. The CARFAX Vehicle Build Score utilizes the full 17-digit VIN to help insurers refine their rating by better understanding a vehicle's value and specific attributes through a simple score.

The CARFAX Vehicle Build Score incorporates a proprietary vehicle valuation model that prevents both over and underpricing by providing precise current market values. CARFAX uses advanced modeling techniques to analyze a vehicle's loss experience at the component level, eliminating the need for yearly updates and adjustments to existing symbols.

"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 CARFAX's database of more than 36 billion records to provide insights into a specific vehicle's factory and post-factory installed features, helping insurers better understand risk and price policies appropriately. "

"For insurers, the Vehicle Build Score is an evolution towards a more advanced and refined approach to symbols and the rating process," Pinnacle Managing Principal Roosevelt Mosley said. "Our partnership with CARFAX allows us to translate detailed vehicle data into actionable risk assessments via a simple score, giving insurers a critical edge in underwriting and pricing."

The CARFAX Vehicle Build Score is designed for both personal and commercial auto insurance markets, offering unmatched details at the VIN level. The score easily integrates into your rating model and is currently being filed and approved by state regulators across the United States.

For more information about the CARFAX Vehicle Build Score, visit CarfaxForInsurers.com.

About CARFAX

CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service and sell used cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.

S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets.

About Pinnacle

Pinnacle is an independent, full-service actuarial firm focused on the property/casualty insurance industry. With a home office in Bloomington, Ill., the firm also has offices in Atlanta, Chicago, and San Francisco. Pinnacle is owned by its professional staff and ranks among the largest property/casualty actuarial firms in the United States. To learn about Pinnacle's Commitment Beyond Numbers, please visit www.pinnacleactuaries.com.

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SOURCE CARFAX

FAQ

What is the CARFAX Vehicle Build Score and how does it work?

The CARFAX Vehicle Build Score is an innovative rating system that uses the full 17-digit VIN to help insurers better assess vehicle risk. It leverages CARFAX's database of over 36 billion records to analyze specific vehicle attributes and provide precise market valuations, eliminating the limitations of traditional vehicle symbols.

How does the CARFAX Vehicle Build Score benefit auto insurance companies?

The score helps insurers refine their rating process by providing precise vehicle valuations and component-level risk assessment. It prevents over and underpricing, eliminates the need for yearly symbol updates, and offers detailed insights into factory and post-factory installed features for more accurate policy pricing.

When will the CARFAX Vehicle Build Score be available for use by insurance companies?

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.

What markets is the CARFAX Vehicle Build Score designed for?

The CARFAX Vehicle Build Score is designed for both personal and commercial auto insurance markets, offering detailed risk assessment at the VIN level that can be integrated into existing rating models.

How does the CARFAX Vehicle Build Score differ from traditional vehicle symbols used in insurance?

Unlike traditional symbols, the CARFAX Vehicle Build Score analyzes vehicles at the component level using the full 17-digit VIN. It provides insights into specific factory and post-factory installed features, delivers current market values, and eliminates the need for yearly updates and adjustments.