New CARFAX Vehicle Build Score Revolutionizes Auto Insurance Risk Assessment

PRNewswire 25-Feb-2025 8:01 AM

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