Does Auto Insurance Check Credit?

  1. 400 POINTS
    Zachary Wright
    Owner, Wright Insurance Agency, Great Pittsburgh Area
    Almost all insurance companies use what's called a soft credit check in one way or another. It is mostly used to determined what is believed your ability to pay for premiums. Generally speaking, the better your credit the better your rate will be, but it varies widely depending on how much that company values that one piece of information when rating. No two companies are a like!
    Answered on April 16, 2013
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  2. 20 POINTS
    Daniel Levenson
    Insurance Broker, InsureYourCompany.com,
    Auto insurance carriers perform a risk analysis to identify high risk drivers. They will look at your credit rating, age, occupation, place of residence, your driving record, insurance payments (on time or late), marital status, type of car and your sex. Each person is weighed by there own risk factor by the insurance carrier before they give a quote. The auto insurance industry invest more time and research into risk analyst than any other industry and they have found a pattern that relates a low credit score to a high risk driver. Due to this finding the auto insurance carrier can adjust the rate of your premium based on your credit score.
    Answered on April 17, 2013
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