Does Getting An Auto Insurance Quote Hurt Your Credit?

Understanding Auto Insurance Quotes and Credit Scores

When you're shopping for auto insurance, you want to get the best rate possible. You may think that getting an auto insurance quote won't have an impact on your credit score, but that's not necessarily true. It's important to understand how an auto insurance quote can affect your credit score and what you can do to minimize the impact.

How Auto Insurance Quotes Affect Your Credit Score

When you request an auto insurance quote, the insurer will likely do a soft credit check. This is a type of credit inquiry that doesn't have an effect on your credit score. However, if you decide to purchase the policy, the insurer will then do a hard credit check. A hard credit check can have an impact on your credit score, typically lowering it by a few points.

Avoiding Credit Score Damage

One of the best ways to avoid any damage to your credit score is to get multiple quotes from different insurance companies at the same time. This way, the insurance companies will only do one hard credit check, which will result in a minimal impact on your credit score. Also, make sure to get quotes from multiple companies to ensure that you're getting the best rate for your policy.

What to Do if You Have Poor Credit

If you have poor credit, you may find that it's more difficult to get a good deal on an auto insurance policy. Insurers consider your credit score when determining your rates, so you may end up paying more if your score is low. However, if you shop around and compare quotes, you may be able to find a policy that fits your budget.

Conclusion

Getting an auto insurance quote doesn't have to hurt your credit score if you're careful. Be sure to get multiple quotes at the same time and compare them to find the best deal. If you have poor credit, you can still get a good deal on an auto insurance policy if you shop around and compare different policies.