Will Getting a Car Insurance Quote Hurt My Credit?
Insurance quotes generally use a soft inquiry, which doesn't affect your credit score. Here's what companies see and why comparing is safe.
Jay Parrack
WV & OH ONLY
"I want to shop my car insurance, but I'm trying to protect my credit score. Will getting a bunch of quotes hurt it?"
Smart question. Nobody wants to shop for one thing and damage something else.
The short answer
No. Checking your credit for an insurance quote is generally a soft inquiry, and soft inquiries don't affect your credit scores. Comparing car insurance shouldn't cost you a single point.
Is there an easier way to compare?
Buying insurance ought to be as easy as checking a price tag. It isn't, so we do the comparing to get you the best rate there is.
If you shop on your own, you enter your information again and again on different websites. With an independent agency, you give it to us once and we check 13 companies. You get the comparison without the phone calls and the spam.
Here's my angle: I'd like your business. A lot of people overpay for years because they're afraid to shop. You don't have to be.
WV & OH ONLY
What's the difference between a soft and a hard inquiry?
A hard inquiry usually happens when you apply for credit, like a loan or a card. A soft inquiry is a review for another reason. The Consumer Financial Protection Bureau says soft inquiries don't affect your scores and appear only when you look at your own report.
Can an insurance company look at my credit without asking?
Federal law, the Fair Credit Reporting Act, lets companies use credit information to underwrite insurance. You should be told when it's used, and if it costs you money you're entitled to a notice saying so.
What do they actually see?
Usually a credit-based insurance score, built from your credit history, along with reasons affecting that score. It's not the same as the score on your bank's app. It's built to predict insurance claims, not whether you'll repay a loan.
Do multiple quotes count against me inside the insurance score?
State rules address this. West Virginia's Bulletin 20-12 requires scoring models to ignore multiple insurance, mortgage or auto finance inquiries within 30 days. Ohio's rule bars counting insurance inquiries as a negative.
Could anything else affect my credit?
Not paying your premium can eventually matter if an unpaid balance goes to collections. Shopping itself won't.
So go ahead and shop. Better yet, let me do it for you.
WV & OH ONLY
Next in the series: Part 5, Why Do Insurance Companies Need My Social Security Number?
Ready for real numbers?
Tell me what's going on and I'll find out what each company will offer you. West Virginia and Ohio drivers only.
