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Does Getting a Car Insurance Quote Affect Your Credit Score?
July 1, 2025
Quick Answers
Requesting a car insurance quote typically involves a soft credit inquiry, which does not affect your credit score.
When you finalize a policy, some insurers may perform a hard credit inquiry, which can cause a minor and temporary dip in your score.
The minimal impact from a hard inquiry is a standard part of the underwriting process and is generally outweighed by the savings from securing a competitive rate.
What Is a Car Insurance Quote?
A car insurance quote is an estimated price for a policy from a specific provider. Insurers calculate this figure using personal details like your driving record, vehicle type, and desired coverage levels. This information helps them determine the level of risk you represent and what your premium would be.
When generating a quote, insurance companies often perform a soft inquiry on your credit report. This allows them to use a credit-based insurance score, as data has shown a link between credit history and insurance claims. Unlike a hard inquiry for a loan, this soft pull does not affect your credit score.
How Getting a Car Insurance Quote Can Affect Your Credit Score
It might seem like shopping for car insurance would ding your credit, but this is a common misconception. Here’s a breakdown of what actually happens when you request a quote.
Requesting a Quote: You provide an insurer with personal details. They access a version of your credit report to generate a credit-based insurance score, which helps predict your likelihood of filing a claim.
The Soft Inquiry: This initial credit check is a "soft pull." Unlike a "hard inquiry" for a loan, it's only visible to you and doesn't lower your credit score, no matter how many quotes you get.
Receiving Your Rate: The insurer uses your insurance score, along with your driving record and other factors, to calculate your premium. Your credit history influences the price, but the quoting process itself doesn't harm your score.
Finalizing the Policy: The only time your score might be affected is when you actually purchase a policy. Some insurers may perform a hard inquiry at this stage, especially if you opt for a monthly payment plan.
How Much Will Getting a Car Insurance Quote Affect Your Credit Score?
When you request a car insurance quote, several factors are considered to determine your premium. Here are the key things to understand about how this process interacts with your credit information.
- Soft Inquiries. Insurance companies perform a soft inquiry on your credit report. Unlike hard inquiries for loans, these checks do not affect your credit score, so you can shop for quotes without worry.
- Credit-Based Insurance Score. Insurers use a credit-based insurance score, not your standard FICO score. This specialized score predicts insurance risk and is calculated differently from the scores lenders use for credit decisions.
- Multiple Quotes are Safe. Getting multiple car insurance quotes will not harm your credit score. Since they are all soft inquiries, you can compare rates from various providers without any negative impact on your credit standing.
How You Can Avoid Getting a Car Insurance Quote Affecting Your Credit Score
Understand Soft vs. Hard Inquiries
Most insurance quotes use soft credit inquiries, which do not affect your credit score. These checks provide a general overview of your credit history. Hard inquiries, which can lower your score, are typically only performed when you finalize and purchase the actual policy.
Ask the Insurer Directly
Before providing your information, ask the insurance agent what type of credit check they use for quotes. A reputable company will clarify whether they perform a soft or hard pull, giving you peace of mind and control over your credit report's activity.
Limit Formal Applications
While getting multiple quotes is smart, only complete a formal application when you're ready to buy. Stick to initial estimates that rely on soft pulls. This prevents multiple hard inquiries from different insurers from potentially impacting your credit score while you shop around.
Choose the Right Card to Getting A Car Insurance Quote
Your credit score plays a crucial role in your financial life, but it is not set in stone. With consistent effort and positive financial behavior, it is entirely possible to improve your creditworthiness using proven methods and see meaningful changes within a few months.
- Monitor your credit reports. Regularly obtain and review your free credit reports from all three major bureaus to identify and dispute any inaccuracies or signs of identity theft.
- Establish automatic bill payments. Your payment history is the most significant factor in your score, so setting up automatic payments helps ensure you never miss a due date.
- Reduce your credit utilization ratio. Aim to keep your credit usage below 30% of your total available credit by paying down balances or requesting credit limit increases.
- Become an authorized user. Being added to someone else's credit card that has a strong payment history and low utilization can help improve your score.
- Diversify your credit mix. Lenders like to see that you can responsibly manage different types of credit, such as revolving credit from cards and installment loans.
- Limit hard inquiries. Space out applications for new credit and use prequalification tools whenever possible to avoid the temporary dip in your score caused by too many inquiries.
The Bottom Line
Getting a car insurance quote typically involves a soft credit inquiry, which does not harm your credit score. This allows you to shop for the best rates without any negative financial impact.
Frequently Asked Questions
Will getting multiple car insurance quotes hurt my credit score?
No. Insurers use soft inquiries to view your credit for quotes. These do not impact your credit score, so you can safely compare rates from various companies.
Why do insurers check credit for car insurance quotes?
Insurers use a credit-based insurance score to help predict risk. Studies show a correlation between credit history and the likelihood of filing a future claim.
Can I get car insurance without a credit check?
Yes, but your options will be limited and likely more expensive. Some specialized providers offer no-credit-check policies, though most mainstream carriers use credit in their calculations.
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