Does getting an auto insurance quote hurt your credit score? (2024)
Getting an auto insurance quote does not hurt your credit score. Most top providers do a soft check on your credit to determine risk when applying for coverage. However, credit scores affect your rates, and drivers with bad credit pay up to 90% more. See if getting an insurance quote affects credit below.
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
UPDATED: Feb 15, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 15, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Auto insurance quotes won’t affect your credit at all
- Most states allow insurers to check credit for risk assessment
- Drivers with poor credit pay up to 90% more for car insurance
You may be relieve to discover that getting an auto insurance quote won’t hurt your credit score. While insurers perform a soft credit check to assess risk and determine your rates, it won’t impact credit.
Read More: Best Companies for Credit-Based Auto Insurance
If you have poor credit, you may be worried about finding a car insurance quote that you can afford. Fortunately, since getting quotes doesn’t affect credit, you can enter your ZIP code into our free quote comparison tool below to compare rates from the best auto insurance companies.
Getting Auto Insurance Quotes Doesn’t Hurt Credit Scores
Unlike applying for various lines of credit, such as an auto loan, a home mortgage, or a new credit card, getting auto insurance quotes won’t have an impact on your credit score. In fact, it shows up as a “soft pull,” which means you’re usually the only one who can see it.
These soft pulls, which also include employment credit checks, promotional offers, and a credit report, don't affect your credit score or report like a hard check.Chris Abrams Licensed Insurance Agent
No matter how many quotes you obtain on auto insurance policies, you can be assured that your credit score will not be affected.
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Most States Allow Car Insurance Providers to Check Credit
At first glance, the practice of a car insurance company checking your credit report or score may seem possibly illegal or like an invasion of privacy. Many consumers wonder why the insurance company needs to know about a driver’s credit history.
However, in most states, it is legal. FICO reports that approximately 95% of car insurance carriers check credit and use it to determine risk classifications for underwriting in states where they are legally allowed.
Learn More: High-Risk Auto Insurance
The result of this process is a credit-based insurance score. A poor or just okay credit score could have a negative impact on your car insurance rate. Car insurance companies will look at several different items on your credit report to help them determine your premium, including:
- Payment history, which accounts for about 40% of your credit-based score
- Length of credit history, accounting for approximately 15% of your total score
- Accounts in collections, if any
- Outstanding debts account for another 40% of your insurance score
- Any previous bankruptcy filings
- New credit inquiries account for about 10% of your insurance score
- Finally, credit mix will account for about 5% of your insurance score
Fortunately, since credit is one of the factors that affect auto insurance rates, you’ll see lower premiums once your credit improves.
Why Credit Matters for Auto Insurance Quotes
While many consumers are unaware of this fact, car insurance companies have been utilizing credit reports and scores to help determine rates for over two decades. Auto insurance carriers claim that these pieces of information are a reliable indicator of the risk they are assuming by insuring a driver.
Various studies reveal that auto insurance policyholders with higher credit scores are less likely to file claims, while those with lower credit scores are at a higher risk to have accidents and file claims.
Check out the table below to compare average rates from the top provider by credit rating:
| Insurance Company | Good Credit | Fair Credit | Poor Credit |
|---|---|---|---|
| Allstate | $322 | $382 | $541 |
| American Family | $224 | $264 | $372 |
| Farmers | $306 | $325 | $405 |
| Geico | $203 | $249 | $355 |
| Liberty Mutual | $366 | $467 | $734 |
| Nationwide | $244 | $271 | $340 |
| Progressive | $302 | $330 | $395 |
| State Farm | $181 | $238 | $413 |
| Travelers | $338 | $362 | $430 |
| USAA | $152 | $185 | $308 |
Some car insurance carriers do not use credit scores to determine car insurance rates, though most do. Learn more about how credit scores affect auto insurance rates.
What Insurance Companies Can’t Use to Determine a Credit-Based Insurance Score
Auto insurance companies can’t use certain information to determine your insurance score, including:
- Age
- Income
- National origin
- Race
- Color
- Gender
- Marital status
- Employment, occupation, and income history
- Where you live
- What interest rates you pay
- Rental agreements
- Child or family support obligations
- Certain types of inquiries into your credit report, such as account review inquiries, pre-employment or promotional inquiries
However, many of these factors are used to determine auto insurance rates.
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Improving Your Credit Score and Evaluating Quotes
If you are someone who has less than perfect credit, you may be interested in improving your credit score to achieve lower auto insurance premiums.
Consider the following ways of improving your credit score:
- Get current and stay current on any outstanding debts
- Avoid applying for new lines of credit whenever possible
- Pay your bills on time
- Keep low balances on your credit cards
- Do not close unused credit accounts
- Obtain a copy of your credit report and verify it for accuracy
- Dispute inaccuracies you might find
It can be frustrating to learn that your credit score could be negatively impacting the amount you pay for car insurance. However, consumers shopping for the cheapest auto insurance companies can rest easy knowing that quotes won’t impact credit.
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To improve the car insurance premium that you pay, enter your ZIP code into our online price comparison tool below. Comparing rates and finding one that you can afford has never been easier than with our online comparison tools. (Read More: How to Evaluate Auto Insurance Quotes)
Frequently Asked Questions
Does getting an auto insurance quote hurt your credit score?
No, simply requesting an auto insurance quote typically does not affect your credit score.
Do insurance companies check your credit score?
Insurance companies usually perform a “soft” credit check, which doesn’t have a negative impact on your credit score. These soft inquiries are not visible to other lenders or credit reporting agencies.
What is a soft credit check?
A soft credit check, also known as a soft inquiry or soft pull, is a type of credit inquiry that does not affect your credit score. It is a preliminary review of your credit history that doesn’t involve a full examination of your creditworthiness. Insurance companies commonly use soft credit checks when providing quotes or underwriting policies.
When does a credit check impact my credit score?
Your credit score can be affected when you apply for credit, such as a loan or credit card, where the lender conducts a “hard” credit check. Hard inquiries can slightly lower your credit score, typically by a few points, and they remain on your credit report for about two years.
Can obtaining multiple insurance quotes impact my credit score?
Not necessarily. When you shop around for auto insurance and request multiple quotes within a short period, the credit bureaus understand that you are comparing rates and seeking the best deal. As a result, multiple inquiries from insurance companies made within a specific timeframe (typically 14-45 days, depending on the credit scoring model) are often treated as a single inquiry, minimizing any potential impact on your credit score.
Are there any exceptions when an auto insurance quote can affect my credit score?
While rare, some insurance companies may perform a hard credit check when providing quotes or underwriting policies. It’s crucial to ask the insurance provider about their credit check policy before requesting a quote if you’re concerned about a potential impact on your credit score.
Does credit score affect car insurance?
Yes, credit scores have an impact on auto insurance rates. Insurers use credit to assess risk level, so you could pay higher rates if you have poor credit.
What is a good credit score for car insurance?
While a “good” credit score is subjective, you’ll likely see affordable rates for coverage if your score falls between 670 and 739.
What is the best auto insurance for a low credit score?
Geico, Nationwide, and Allstate are the best auto insurance companies that don’t use credit scores.
Does getting an insurance quote affect credit with Geico?
No, your credit score won’t be affected if you get a Geico quote. Learn more in our Geico auto insurance review.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.