Does Getting Auto Insurance Quote Affect Credit Score?

Most drivers understand the need for auto insurance, but it's still important to find the best policy and the best price. Insurance companies use various factors to determine premiums, and one of them is usually credit score. It's important to know the details of how credit score influences auto insurance, so drivers can make the best decision for their situation.

The Role of Credit in Auto Insurance

Insurance companies use a variety of factors to determine premiums, including type of vehicle, driving record, and credit score. Credit score is an important factor because it provides an indication of how likely you are to pay your premiums on time and in full. A good credit score indicates that you are responsible with money and that you have a good history of paying bills on time. On the other hand, if you have a low credit score, this may indicate that you are more likely to miss payments, and thus, the insurance company may charge you a higher premium.

Does Getting a Quote Affect Your Credit Score?

Often, drivers worry that getting a quote for auto insurance will affect their credit score. Fortunately, the answer is no. When you get a quote, the insurance company will run a “soft pull” of your credit report. This means that the company will view your credit score, but it won't affect your score in any way. However, if you choose to purchase the insurance policy, the company may run a “hard pull” of your credit report. This can affect your score, but it usually only decreases it by a few points.

How to Get the Best Quote

If you want to get the best quote for auto insurance, there are several steps you can take. First, make sure you have a good credit score. Pay your bills on time, maintain a low credit utilization rate, and dispute any errors on your credit report. You should also shop around and compare quotes from multiple insurance companies. This way, you can find the best policy and the best price.

The Bottom Line

It's important to understand the role of credit score in auto insurance. Getting a quote for auto insurance won't affect your credit score, but if you purchase a policy, the company may run a hard pull of your credit report. To get the best quote, make sure you have a good credit score and shop around for the best policy and the best price.