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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 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 Tracker
No. They do not report it to the credit bureaus.

They check your credit because there is a correlation between good credit and good drivers / bad credit and bad drivers. Bad credit=irresponsiblity

Answer by bdancer222
While it’s a good idea to pay all your bills in a timely manner, things like your insurance, rent, utilities, etc do not report timely payment to the credit bureaus and do not impact your credit score.

Answer by SPIFIMAN1
No things like automobile insurance, rent, utilities, cell phones and gym memberships do not report to the credit bureaus unless you do not pay them.

The reason is they are not considered loans.

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Answer by John C
Part of it is the credit, but a very small part of the change I would guess. Many insurance companies jack up rates each year in excess of 20%, especially on accounts that are in escrow. My homeowners insurance went up substantially because they claim over last year it would cost that much more to rebuild my home because of increased costs in materials, So my $ 47,000 house, which was insured for rebuild at $ 165,000 was increased to $ 240,000 in insurance. A 5 minute phone call got it dropped back down. Good luck.

Answer by ☼AstrologerJuliAnne☼
Yes, your premium is tied to your credit score now. Perhaps their logic is that you might be so far in debt that you resort to burning down your home to collect the insurance.. LOL

Answer by NJ
All rates have gone up, The storms on the coast, floods in the Midwest and the fires in CA can cause rates nation wide to rise, AND they have.
Credit does matter as well, a lower score will get you a higher premium
Farmers is the worst.
So a combo of all together has caused your increase.

Go with a company that has an REAL AGENT, esurance might sound good but there is nobody with you interest.

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Answer by oklatom
Yes, I knew it. Nothing new about it, a credit score tells a lot about a person and is one of the things they check to set your rates.

They certainly do not keep it a secret that your credit score will be run, and your driving record will be looked at also.

Answer by graciouswolfe
I know that any bad marks on your credit score, definitely effect your insurance rate. I do not like it, but hey, our government has long granted the insurance industry to do as they please.

Answer by Clevis D
It’s THEIR company, THEIR guidelines and policy. By the way, you are not REQUIRED to have insurance — you are only required to have the funds available if you are found liable for a collision and/or injury.

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Answer by Entidtil
so…………..Shopping for insurance is called a “soft” inquiry and has no effect on your credit score…..so

so

so

Answer by mbrcatz
Getting automobile insurance, the hit for the quote, is a SOFT hit, and will not affect your credit score. Getting the LOAN for the car, though, is a HARD hit and WILL affect your credit score. That means, purchase the insurance first, for the ideal rate.

Some companies will give you an estimate, and not actually run your credit until you purchase the policy – especially on the web sites. That makes for a really unsightly surprise sometimes, when you actually go to purchase the policy.

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Answer by fordman
You can bet that the insurance companies have records on people with low credit scores versus the people with higher credit scores. The higher credit score people might have more responsibility and less accidents. good luck.

Answer by PJ
They have been doing it for years and have shown in court that people with bad credit have more claims.

Is it right? Well that can go both ways. Insurance companies want to predict who is going to have claims and make them pay more and reward people who are not going to have claims. They work up very complex equations to help predict this and credit is one tiny part of it.

On the other hand, people that typically have bad credit are young (teenagers have no credit), minorities, and ‘poor’ people. So are insurance companies discriminating against these groups? Well the insurance industry says that they do not care what the demographics of the groups are. Their statistics show that their equations identify who is going to have an accident (or put in a claim).

So… what is the answer. It will take a few years but some says have passed laws that ban the companies from using credit in their equations. In a few years we will see if their new ‘equations’ work as well as the equations that have credit in them. If they do, then many says will be passing laws to ban credit use.

If you do not like it you should make a complaint to your say insurance department. They need to here from you if you think it is wrong to use credit.

Answer by Scott H
My personal view is one has nothing to do with the other, but somebody figured out that this is another way for insurance companies to rate up drivers and squeeze more out of them.

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Answer by cainvest1
No. Inquiring about loans will but not insurance.

Answer by StephenWeinstein
Yes, it will, but not much, and only for a year.

Answer by Flyby
It is not supposed to affect your score, but if you are concerned about it then you can request your credit score and check for yourself. Frankly, I see NO need for any insurance company to check credit to write a policy. It is one more way that someone can steal your identity. I do not think that anyone or any business should have access to Antone’s credit file unless the individual is applying for a loan.

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Answer by me
Insurance companies do not pull your credit. It will not affect your score. And when you are shopping around for a car for each three inquiries from auto dealers it only counts as one because they know that people need to shop around and get the ideal deal. It’s not like credit cards where each one you apply for counts as an inquiry.

Answer by PeterJ
It has no effect on your credit score….they will check your credit score to see if you have credit for insurance. Thats all.

Hope this helped

Answer by Laura F
If you lookin for some real cheap insurance get the dollar a day insurance $ 365.00 a year!

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Answer by mythoughts
No. They check your credit for rating purposes, but it does not go onto your credit as negative.

Answer by mbrcatz
No, it’s a “soft hit” and will not affect your score.

Answer by JJ
You are close in your concern. If you are applying for a bunch of loans or credit cards, those companies will pull full reports of your credit activity to be able to examine your payment history. All of these credit pulls are noted on your full credit report and too many of them will have a small affect on your credit score. (I do not know how many, but it doesn’t have too huge of an affect).

The insurance company is just getting your score without getting a full analysis. As mbrkatz said, this is a soft hit and does not go against your credit score. Many companies get soft hits on your credit without you even knowing. If you get unsolicited credit card or loan offers, they might have received your credit score and have offered you this deal because of the score alone.

In short, get as many insurance quotes as you can and do not worry about it affecting your credit score. It is good to have a few options to look when you are getting insurance.

Good Luck!

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