Comparing Multiple Insurance Quotes From Dozens Of Providers Will Not Lower Your Credit Score.

4.3/5 ( 74 votes ) insurance companies check your credit score in order to gauge the risk they'll take to insure you. If you’re in one of these states, you’re in luck. Almost all of them will.

Insurance Inquiries Do Not Hurt Your Credit Score.

Auto insurance companies do, however, reference numerous studies showing a correlation between credit history and the likelihood that a consumer will file an insurance claim. Insurance quotes do not affect credit scores. Surprisingly, in some cases, poor credit can increase your car insurance rates more than a recent dui.

Consenting To A Credit Check Could Save You Money On Your Insurance.

I’m wondering what our rights actually are in this situation. When an insurance company checks your credit, a record of the credit check will be added to your credit file. Historical data from the federal trade commission shows drivers with poor credit file more claims than do drivers with excellent credit, and that these drivers' claims are more costly to an insurer.

In Fact, Rates For Drivers With Poor Credit Are 75% Higher, On Average, Than For People With.

When an insurance company factors your credit score, they only do a soft pull on your credit. If your score is low or if there is an indication that you might be living beyond your means, it may affect whether you get coverage at all. Then there are soft inquiries, which is when you check your own credit or a lender or other business checks your credit to prequalify you for an offer.

You Can Get As Many Inquiries As You Want Without Negative Consequences To Your Credit Score.

Even though insurance companies check your credit during the quote process, they use a type of inquiry called a soft pull that does not show up to lenders. Although most insurance companies check your credit history, they do not use your actual credit score. Do car insurance companies check your credit?