How will Multiple Auto Insurance Quotes Effect My Credit?
Most Insurance companies run an Insurance Score. An Insurance Score
helps in determining your insurance premiums. Now days most
companies run an insurance score every time an insurance quote
is run. The insurance score is derived from many different factors.
Credit is only one factor and in some states, such as California, it
is considered unlawful for the car insurance company to factor in a
persons credit score. In states that do allow credit scoring, it may
be a major component in factoring your auto insurance premium, however
it is a soft hit on your credit and will not effect your credit score.
Other factors that help in the determination of your premium
are your motor vehicle report, accident history and in some cases
your profession can also have an impact on your premium.
You have the right to decline an insurance score, however if you
decline, the insurance company generally will default your premium
to the worst tier, in turn costing you money. In practice you are
better off allowing the insurance company to run your score
because even if you have bad credit your premium will most likely
be more expensive if you do not allow them to run your score. In
closing it is generally better to allow your insurance Agency
to run your credit when working up auto insurance quotes. Keep in
mind it does not effect your credit score.
Many people feel as though insurance scoring should be banned while
others take the stand that statistics have proven that your score
coincides with your risk factor. Which ever view you take it
looks as though insurance scoring is here to stay for better
or for worse.