Title: Will my credit rating change my insurance rates?
Published: February 2, 2017
Last modified: March 5, 2021

---

#  Will my credit rating change my insurance rates?

I was recently asked this question by one of our AGENCYNAME clients, and thought
I would share the answer here for our readers.

There are a lot of things that go into homeowners and auto insurance rates, one 
of them being credit. I’ve heard a lot of complaints from people who don’t like 
the fact that insurance companies use credit in their underwriting.

Some people have absolutely no idea that it’s used in the rate at all.

At the end of the day, there’s not much we can do about it though. Insurance companies
have been using credit in their rates for decades, and that’s not likely to change.

By the way, insurance companies don’t pull your credit like a mortgage company or
credit card company does. There is no negative impact on your credit as a result
of an insurance company looking at it.

When I say “pull” what I mean is that the insurance company is doing what’s called
a soft inquiry, which is not the same thing as having your credit pulled (hard inquiry).

When does credit play a role in insurance rates?
 It’s important to understand that
insurance companies don’t continuously check or monitor your credit. Usually, they
only check it when you first get a quote and/or sign up with them in the very beginning.

This means that if your credit score increases (or decreases) your insurance company
does not automatically know about it.

So, to my customers question of whether or not his increased credit score will lower
his rates, the answer is not automatically.

What has to be done on our side as the agent is contact the carrier the insurance
and ask them to do what’s commonly referred to as a “re-score”. This is when the
insurance company can re-run the person’s credit (soft inquiry) to see if there 
is any positive bearing on the rate.

This isn’t something that the insurance company is going to let the agency do every
single year, so it’s not worth even asking unless there has been a significant change
in your credit score, and only you as the customer would know if that was the case.

If you’d like to get a better handle on your credit rating, it could be helpful 
to setup credit monitoring. We hope this was helpful! As always, leave us comment
below if you have any questions.

#### Please complete the form below for a quote.

 * What would you like a quote for? Check all that apply:*
    -   Auto
    -   Home
    -   Condo
    -   Renters
    -   Rental Property
    -   Life
    -   Motorcycle
    -   Boat & Jet Ski
    -   Umbrella
    -   Business Owners Package
    -   Work Comp
    -   Contractors Insurance
    -   Other
 * Primary Policyholder Name*
 *    First    Last
 * Your Phone Number*
 * Your Email*

 * How did you find our agency?*
    -   Google Search
    -   Facebook Page/Post
    -   Facebook/Instagram Ad
    -   Google Ad
    -   Customer Referral
 * Who referred you to us?*
 * Current Insurance Provider*
 * Date Quote Needed*
 *   MM slash DD slash YYYY
 * If you have any other questions, comments or requests, please leave them here,
   thank you!

### Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at AGENCYNAME is here
and ready to make the process as painless as possible. We look forward to meeting
you!

 [ Start Here ](https://mu6.advisorevolved.com/quotes/?output_format=md)