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Do auto insurance quotes affect credit? Will getting a car insurance quote lower my credit score? How can I get quotes without hurting my credit?
Do Auto Insurance Quotes Check Credit?
Are you wondering if they have to check your credit when you get a quote? A car insurance company wants to know if you will pay your premium. Also, your credit history can help them see how risky it would be to insure you. However, there is good and bad about them checking your credit.
Insurance credit is different from your score. Some people think that insurance companies are like a bank. They think they need a perfect score. But that isn’t the case. This is because insurance companies are actually more interested in your monthly bills. Since most people pay a monthly premium, they want to see bills in your name. If your utilities are in your name, you’re off to a great start.
Because everyone needs insurance, they won’t hold you to a standard of perfection. If you need a score range, you’ll probably be fine with around a 600, but it depends on the carrier.
How Does Credit Affect Auto Insurance Quotes?
Your credit can impact your auto insurance quotes. Some companies require good credit. However, a poor credit history can change your rate.
One time when I was trying to set a lady up with a policy from The General, the rate just about doubled. Her driving history was clean. Nothing else changed when I ran her reports. I asked a mentor and he said it must be her credit history.
I have rarely seen a rate decrease due to credit. However, the increase is usually small. Better yet, most people’s credit doesn’t seem to raise their rates. So I wouldn’t worry too much about it.
Will They Have To Run My Credit?
Unfortunately, they will have to run your credit. However, they usually do a soft credit check which won’t impact your score. The big things they will look at are multiple accounts in collections and missed payments.
Life happens and one or two accounts in collections probably won’t affect you.
Summary
Yes, auto insurance quotes can affect credit because they check your credit. However, this may actually not be a bad thing. Your credit rarely seems to up your rate.
As long as you have okay credit, you will be fine. If you can, just make sure you’re paying monthly bills in your name. There isn’t a way to really skip having your credit checked.
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Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.
