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Auto Insurance Quote + Credit Report

M

Mayfriday0529

Diamond Member
I see that in order to get a Quote from Insurance Companies like Geico and Progressive they did to check my Credit Report.

Is having them check it a negative thing to my Credit Report? Especially when there are multiple requests from different companies: Geico, Progressive etc...

I heard that if you are looking for a loan and apply multiple times it can look bad on your report. Would this be the same thing?

I have State Farm Insurance just curious if I could get a lower price with someone else.
 
I believe when there are multiple requests within a short span of time it does not have a bad effect. This is because everyone knows that during that time you were shopping around for the best rates which is always wise. Now if there are recurring requests every few months then you may have a problem.
 
I'm not sure if you know or not, most likely you do. the insurance companies are checking the credit reports to see what kind of rates to quote you. If you have a lower credit score, the insurance companies will jack your rate up. IMO I think this is bunch bs. My credit rating should not affect my insurance rates. My driving record should be what determines what kind of auto insurance rates I get.
 
Originally posted by: Jnetty99
I see that in order to get a Quote from Insurance Companies like Geico and Progressive they did to check my Credit Report.

Is having them check it a negative thing to my Credit Report? Especially when there are multiple requests from different companies: Geico, Progressive etc...

I heard that if you are looking for a loan and apply multiple times it can look bad on your report. Would this be the same thing?

I have State Farm Insurance just curious if I could get a lower price with someone else.
Click to expand...


From what I understand.. if there are multiple pulls, for lets say attempting to get a loan, it generally is only considered as one inquiry.


Also, the insurance companies may only pull a "soft" inquiry, and not a "hard" inquiry.
A "hard" inquiry are the inquires that can be viewed by others that are viewing your credit report. "Soft" inquiries are the ones that only you can see.
You could always contact the insurance companies and ask them what type of credit pull do they do..

 
It all depends on what state you live in. For example in CA they may pull your credit score but it cannot affect your rate by law. I am not sure about NY though.

Some law passed a while back that made it this way in CA.

I think it's bad though; there are statistics that prove people that have lower credit scored are worse drivers. I DID NOT SAY ALL I just said most. It has to do with stability and caliber. That's how insurance companies work. I get charged more because I am male and I drive a 2-door car even though I never have made any type of claim or ever been in an accident.

If companies made a custom tailored policy to each person people would say it was an invasion of privacy because of all the info the company would request. So they have to come up with general statistics to make generalizations for policy rates.
 
This is what Geico states on why they pull it.
Why does GEICO use my credit information?

GEICO, like many property and casualty insurers, uses information collected from consumer reporting agencies such as your driving record, credit and claims history in order to offer you the most appropriate rate.

What is a credit-based insurance score? Why does GEICO use them?


An insurance score uses information from your credit report to predict how often you are likely to file a claim and/or how expensive those claims will be. GEICO uses information collected from consumer reporting agencies such as your driving record, credit and claims history in order to offer you the most appropriate rate.

No one at GEICO actually sees your credit report. The insurance score takes into consideration specific things like payment history, collections, and length of credit history and credit utilization.
Click to expand...

Edit: My Credit Score is good, but I never had State Farm my current Insurance review it.
 
no, it will not effect your credit score.

Don't get me wrong, the viewing will show up on there, but it will not effect your credit score at all.

PS, almost every ins co. runs a loss run/credit score.
 
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