Are you hesitant to request an insurance quote because you’re worried it might harm your credit score? It’s a valid concern, but the answer is not as straightforward as you might think. In this blog post, we’ll explore whether or not obtaining an insurance quote can hurt your credit and provide some tips on how to protect your credit while shopping for coverage. So, buckle up and let’s debunk this common misconception once and for all!
What is an insurance quote?
An insurance quote is an estimate of the cost of insurance coverage for a potential customer. The quote is based on information provided by the customer, including the customer’s driving history, age, and location. The quote does not include any personal information about the customer, and it does not impact the customer’s credit score.
How does an insurance quote impact your credit score?
When you receive an insurance quote, the insurer will likely run a soft credit check to determine your rates. This type of credit check will not impact your credit score. However, if you decide to purchase the policy, the insurer will run a hard credit check, which could temporarily lower your credit score.
What are the benefits of getting an insurance quote?
There are a few benefits to getting an insurance quote. First, it can help you determine if you’re getting the best rate for your insurance. Second, it can give you a sense of the different coverage options that are available to you. Finally, it can help you keep track of your insurance costs over time.
How to get an insurance quote without impacting your credit score
When you’re shopping for insurance, it’s important to know that getting a quote won’t hurt your credit score. Here’s how to get an insurance quote without impacting your credit score:
1. Use a tool like Credit Karma or Credit Sesame to check your credit score before you start shopping for insurance. This way, you’ll know what your score is and you can monitor any changes after you get a quote.
2. When you get an insurance quote, be sure to ask if the company will pull your credit report. If they say yes, tell them you’d like to use another method to get the quote.
3. Some insurers may give you the option to use a “soft pull” of your credit report, which won’t impact your score. If this isn’t an option, you can always provide the insurer with other information such as your driving history or previous insurance coverage.
Conclusion
In conclusion, shopping around for the best insurance rate can benefit you financially without hurting your credit. Insurance agents may use a soft inquiry when obtaining a quote on your behalf and this will not affect your credit score in any way.
As long as you are careful to only request quotes from reputable companies, then you should be able to get multiple quotes without affecting your credit standing. Be sure to compare all of the factors involved so that you can find the policy and premiums which best suit your needs.
