Do Car Insurance Quotes Affect Your Credit Score?

The Answer: No, Insurance Quotes Don't Affect Your Credit

Here's the short version: getting car insurance quotes does not affect your credit score. Period.

When you request a quote, insurance companies may check your credit history to calculate your rate. However, this is classified as a soft inquiry (also called a soft pull or soft credit check), which is invisible to lenders and has zero impact on your credit score.

You can request as many insurance quotes as you want — from 3 carriers, 10 carriers, or 50 carriers — without any effect on your credit. There's no limit, no penalty, and no downside.

Soft Inquiries vs. Hard Inquiries

To understand why insurance quotes don't hurt your credit, it's important to know the difference between soft and hard credit inquiries:

Soft inquiry (soft pull):
A soft inquiry occurs when your credit is checked for non-lending purposes — like background checks, pre-approval offers, or insurance quotes. Soft inquiries:

• Do NOT affect your credit score
• Are only visible to you (lenders can't see them)
• Can be performed unlimited times without consequence
• Include: insurance quotes, employment checks, checking your own credit, pre-qualification offers

Hard inquiry (hard pull):
A hard inquiry occurs when a lender checks your credit as part of a lending decision — like applying for a credit card, mortgage, auto loan, or personal loan. Hard inquiries:

• CAN affect your credit score (typically 5–10 points per inquiry)
• Are visible to other lenders
• Stay on your credit report for 2 years (but only impact your score for 12 months)
• Include: credit card applications, mortgage applications, auto loan applications

Insurance quote inquiries are always soft pulls, so there's no risk to your credit score.

How Do Insurers Use Your Credit Information?

Although insurance quotes don't hurt your credit score, insurers do use your credit information to calculate your rates in most states. Here's how it works:

Credit-based insurance scores:
Insurers use a specialized score called a credit-based insurance score, which is different from your standard FICO or VantageScore credit score. This score is derived from your credit report and predicts the likelihood that you'll file a claim.

Studies have shown a correlation between credit behavior and insurance risk. People with lower credit scores are statistically more likely to file claims, so insurers charge higher premiums to offset that risk.

How much does credit affect your rate?
Significantly. According to industry data:

• Drivers with poor credit pay an average of 76% more than those with excellent credit
• In some cases, the difference can exceed $1,000+ per year
• Credit can be more influential than age or driving record in some states

States That Ban or Limit Credit-Based Pricing

Not all states allow insurers to use credit in pricing. Four states have banned or severely restricted the practice:

California: Banned the use of credit scores in setting auto insurance rates.
Hawaii: Banned the use of credit scores in setting auto insurance rates.
Massachusetts: Banned the use of credit scores in setting auto insurance rates.
Michigan: Limits how credit can be used (insurers can't use it as the sole basis for denial or rate increases).

If you live in one of these states, your credit history will not be a factor in your insurance premiums. Rates are determined by driving record, age, vehicle, location, and other factors.

In all other states, insurers can (and do) use credit-based insurance scores to help set rates.

How Many Insurance Quotes Can You Get?

As many as you want. There is no limit to the number of insurance quotes you can request. All inquiries are soft pulls, so you can:

• Compare quotes from 3–10+ carriers
• Re-shop every 6–12 months
• Get quotes for different vehicles to compare insurance costs before buying
• Request quotes from the same insurer multiple times (e.g., trying different coverage levels)

In fact, comparison shopping is highly encouraged. Rates for identical coverage can vary by $1,000+ per year between insurers, and the only way to find the best price is to compare multiple quotes.

Credit Score vs. Driving Record: Which Matters More?

It depends on the state and insurer, but both factors are significant:

Driving record:
Your history of accidents, violations, and claims is the most direct predictor of risk. A DUI, reckless driving ticket, or at-fault accident can increase your rates by 30–100% or more.

Credit score:
In states where it's allowed, credit can be equally or even more influential than driving record. Drivers with poor credit but clean driving records often pay more than drivers with good credit and one minor violation.

Which you can control:
You can improve your credit score relatively quickly by paying bills on time, reducing debt, and correcting errors. Driving record violations typically stay on your record for 3–5 years.

Does Checking Your Own Credit Hurt Your Score?

No. Checking your own credit is also a soft inquiry and has no impact on your score. You can (and should) monitor your credit regularly to:

• Ensure accuracy and dispute errors
• Track your progress if you're working to improve your score
• Detect identity theft or fraudulent accounts
• Understand what factors are affecting your insurance rates

You're entitled to one free credit report per year from each of the three major bureaus (Equifax, Experian, TransUnion) via AnnualCreditReport.com. Many credit card companies and financial apps also offer free credit monitoring.

Frequently Asked Questions