Few policyholders understand what their credit rating has to do with insurance rates, and that is something we must do a better job of explaining. This is an easy conversation to have with the vast majority of policyholders who pay lower premiums on auto and property insurance thanks to their good credit ratings. But if they don't know their responsible habits are being recognized, then there is no way they can appreciate the benefits, and even less chance they will advocate to keep them.

Fair Isaac, a company that provides credit risk management services, reports that up to 75 percent of policyholders pay lower premiums through insurers' use of credit-based insurance scoring. The scoring is a snapshot of a policyholder's insurance risk that makes rates more accurate, objective, and consistent. Credit-payment patterns from a credit report are a proven statistical link relative to the likelihood of an insurance loss. Why? Because people who manage their credit well also are most likely to manage their insurance risk well.

Yet our industry seems to have a hard time talking about the use of credit scores. We tried renaming them, with the hope the moniker "credit-based insurance scores" would clarify that credit is just one component of an insurance score. That didn't help much. Our big opportunity — here and now — is to tell customers when their good credit scores pay off with lower insurance rates. If they are made aware of it this benefit, then they will appreciate it and want to hang on to it.

There are threats on the horizon to take that benefit away.

For decades, insurers have used actuarial data that supports the use of credit scores as a valid risk assessment tool. It is a proven fact. However, legislators, regulators, and politicians are not going to let data and logic interfere with an emotional argument for restricting or eliminating its use. It may be common sense that positive credit habits transfer to other positive habits, such as driving responsibly and defensively and taking the car in for routine maintenance. But common sense and facts often get trounced by righteous indignation. Alas, the industry's only defense is….more facts.

When explaining the use of credit-based insurance scores, the insurance industry has traditionally assumed a defensive position. Because most people benefit from its use, defense is not the correct play. We need to be proactive and get the good story out there first. It is time to educate and communicate about the positive association between good credit and lower insurance costs. You can arm yourself with the "clip and save" message chart that accompanies this article. You also can access it online at www.InsuringFlorida.org if you want to send it electronically to clients and associates.

Lynne McChristian is the Florida representative for the Insurance Information Institute. She may be contacted at 813-480-6446, [email protected]. Also, see www.InsuringFlorida.org for her insurance blog, "Straight Talk."