Does Getting Car Insurance Quotes Hurt Your Credit?

It is known that car insurance and credit scores are severely interlinked when it comes to your rates. However, what happens if you receive multiple car insurance quotes? Can it affect your car insurance rates when you finally settle on a policy?

The good news is that getting quotes from multiple insurers will not affect your rates. In fact, the quotes you receive—or the fact that you received them—will not be visible to lenders. It will not have any affect how much you pay for car insurance.

Why Does Credit Affect Your Car Insurance?

When insurance providers calculate your car insurance, they calculate based on how much risk you present. Risk refers both to how likely you are to file a claim and how much money you may cost the insured.

A driver with a low credit score presents a risk to the insurance provider as it is seen as how likely you are to pay your premiums in full and on time. This is because your credit is affected by paying (or not paying) other bills, loans and debts. Finding affordable car insurance can be difficult for drivers with a low credit score, although not impossible.

Should I Compare Quotes Before Getting Auto Insurance?

You should always compare quotes before you purchase an auto insurance policy. Getting quotes from multiple insurers can not only help you save money, but it can help you understand how much car insurance you need and where you can save on the right coverage.

After all, not every driver has the same car insurance needs. If you have an older car, for example, you may want less auto insurance coverage than you would on a brand-new vehicle.

Also be sure that you are getting car insurance quotes from credible sources. All insurance provider should offer the minimum auto insurance requirements as dictated by the state. Many also offer full coverage options that include comprehensive coverage, collision coverage, liability, medical payments coverage, uninsured/underinsured motorist coverage and more.

Check reviews and ask around about a possible insurance provider before getting a quote. Once you receive multiple quotes, you can decide which policy and provider you wish to go with. Price is a major factor but also take into account the coverage offered, the areas covered (in case you move) and how the agency communicated with you.