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Answer by Ginger
Insurance companies are a soft hit and do not impact the scoring.

Answer by Steve
Those are soft pulls, similar to if you check your own credit or if a potential employer pulls your credit. They do not negatively affect your credit score. Hope this helps!!

Answer by Help Is Here!
Soft
You are not borrowing money from Geico

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Answer by causant
Allstate does not use credit score when calculatin your rate at all. Progressive uses credit score only if you are paying in installments..you usually pay more. If you are paying for the policy in one payment, they do not take credit score into account.

Answer by car253
It also depends on what say your in. In California credit scores are not used.

I think credit scores are wrong. You need to contact the Department of Insurance in your say and let them know you are against credit scores. A link is below. Just click on your state.

Answer by mbrcatz
Leader Infinity will, at your request – but they will automatically give you the highest rates, assuming you have bad credit.

I’m sure there are others.

The PROBLEM is, there IS a direct corrolation between claims paid out and credit score – so the companies that were last, moving into credit scoring, wrote higher risk policies unknowingly, using the old methods. They had higher losses, and had to raise rates, etc.

To be more competitive, to be able to write GOOD business that doesn’t have the losses of higher risk clients, they HAVE to be able to sort out those higher risk clients. Credit scoring does that.

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Answer by are_see_bee
The “thinking” is that responsible folks have good credit and it’s all relative to your driving ability….I personally do not agree, my credit stinks, but I am a good driver, and my driving record proves it, however, recently most of the huge insurance agencies did begin using credit scores/ratings to base their rates on. It’s not fair, but what choice do we have

Answer by kirsten h
what can you do in the world this day without good credit? not much. they check your credit because they along with each other business in the world feel that if you are responsible in paying your bills, you are a superior risk and that you are more careful in driving and take superior care of your property. they do not run the typical credit report and can’t see what is on your credit. they run an insurance credit score which basically tells them only if you have a high, med, or low score. the superior the score the superior rates you get.

Answer by mbrcatz17
It’s like prior speeding tickets – insurance companies have found a direct corrolation between credit score, and claims paid out.

There have not been any studies, to the ideal of my knowledge, WHY people with lower scores have more claims filed, and more paid out on claims – so anyone who states “it’s because you do not maintain your car” or “its because you driver carelessly” is speaking out of their hat (or, SHOW ME THE STUDY!!!).

But I have seen the charts with my own eyes!! That show, people with a credit score of 705, on average, have $ 1 paid out in claims for each $ 1 paid in premiums; and people with a 550 have $ 2.50 paid out for each $ 1 paid in premiums.

Insurance departments in just about each say grant credit score to be used as a rating factor, because the mathematical relationship is THERE, and is PROVEN.

Sorry, they really do not care about why.

Now, what you need to do, is get a copy of your credit report and clean it up!! MOST of the time, closing out all the unused, newer accounts can seriously increase your score – as it’s not just about paying bills on time, but how many times you have applied for credit in the past six months, how many accounts you have open, balance due on accounts, available credit (lower those credit lines!!), and the average length each account has been open.

Yep, people who move from one credit card company to the other each year, getting the lowest interest rate, and always paying on time, have a WORSE credit score than someone with a couple late payments, that is had the account for 10 years.

Hope that helps.

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Answer by bonnie m
unfortunately what they stated is true, any insurance company will run a credit report. or even if you are buying anything huge they do a credit report, they want to make sure they get paid.

Answer by J C
Insurance companies several years ago got the commissions in most says to grant them to rate drivers based on credit rating … good credit = good driver, bad credit= bad driver … which is just a bunch of BS. But insurance companies needed another item to based increase charges on. And the kicker is when you shop for insurance and go to several companies, all the checks does lower your score. Just another racket by insurance companies to manipulate the system.

Answer by arealmountainman
The legality of that is questionable, but it is common practice now days in nearly any business. At least they told you about it, most don’t. Employers check it now days also. If your credit report looks bad you will begin having problems getting jobs, rental houses, insurance, and who knows what else, and most denials will not say that it was because of your credit report. Is also ironic that checking your report leaves a bad mark when all the businesses want to check it without your consent or knowledge. Clean up any bad items on your report, wait a bit, and try again. Good luck.

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Answer by missyofallainhouse
Unfortunately, any time your credit is checked you are lowering your score. It always fluctuates, depending on payments and how many open accounts you have.
It is unfair, but it’s just the way it is.
Just as an FYI, if you are looking to purchase a house, do not use lendingtree or anything like that to help you search for a great rate, that also sends checks to your credit score for like ten companies. It hurts your score alot.

Answer by paige f
a matter of fact I just asked a professional about that and if you get it checked more then one time a month yes you will injured your credit.

Answer by Maddy Waddy
Only Fair Is sacs and Co. knows their method of computing credit scores. It certainly unfair to have your score decreased for responsibly looking for the ideal value in insurance, but it is unlikely that your score will be significantly reduced for such inquiries. Keep in mind, however, that your insurance rate will be adversely affected by your credit score. There is more reason that one to maintain a high credit score. You can find out how to maintain a high credit score or how to repair your current credit report by going to www.MoneyExposed.com.

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Answer by firstquality72
Absolutely, the insurance quote will not injured you.

Answer by Just Me
Not that I believe,but who knows now a day. I know your credit score will affect what your insurance costs. Why I do not know. Just cause you have good credit doesn’t mean you can drive and visea versa.

Answer by oklatom
If you apply to several credit card companies asking for credit, then the inquiries can impact your score. If it is an insurance company only looking to see what your score is, and not planning on loaning you money, it will have no impact on your credit score.

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Answer by rottendog93
Yes they are high, and for minimum coverage. Minimum coverage might keep Johnny law off your butt, but it will not do much for you if you injure someone or do major damage.

Answer by Entidtil
Basically…..Some check credit, some don’t. Simply call around for quotes and select the ideal quote for you and your circumstances…..basically

Answer by lucy
Safe Auto is high risk insurance, that is the reason they say they do not check credit, since most people who purchase it, cant purchase from a huge name auto insurance company due to their credit, driving record of tickets, or multiple accidents in the past.

Your ideal bet is to get multiple quotes from at least 3 companies. I recommend you call a agent and discuss and they will give you their suggestions. Also, with any high risk auto, most only have minimum limits only, so if you have any assets, you need more than the minimum to protect you.

As a general rule, any accidents/tickets etc will stay on your record for 3 years and if as you say you driving record is good, I recommend you try some of the other companies even with bad credit, since the rates they will charge will most likely be cheaper than Safe Auto.

good luck

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Answer by amber s
I am not sure what a credit freeze is. Can you give more detail? What is is for? What advantage would there be to freeze credit? Lack of credit or lack of activity, is generally looked at negatively by the credit agencies. So if you have poor credit the ideal advice would be to fight all inaccuracies first. The agencies are, by law, obligated to research each claim with the group that entered the info against you. Other than than time and good habits are really the only way to combat a poor credit score.

Answer by Tom Z
You will have to temporarily suspend the freeze on your account. You would have to look far and wide for a company that does not use the credit score as a basis for offering their ideal rates.

Answer by mbrcatz17
Yes, you will have to unfreeze it when you are shopping around for auto insurance. IF they cannot get a hit on your credit score, either they will refuse to write you at all, or you will get the highest rates they offer.

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Answer by rottendog93
But they do, and you are trying to do business with them.
Deadbeats usually do not pay any bills on time.

Answer by oklatom
It’s no secret they run your credit. They are looking for risk factors that would increase your premium, and having a poor credit rating has been shown to increase the risk to the insurance.

Of course, you are not required to give out your social security number, but if you don’t, they can decline to insure you.

Likewise, your employment can also affect it. A bookkeeper would be less risk than a police officer for example.

Added: afterthought. Also it will decide if you can make payments, or if they want the whole thing paid up front.

Answer by sideboom
just stay on your parents plan until you get on your feet. your parents can do a credit check on their own plan( for you),to see how well you score with the company.

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Answer by Tagan H
some of the huge auto insurance company pull your credit but it should not affect your credit it is looked up as a soft hit on your credit report

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