Credit Score Basics > Do insurance quotes affect credit score?

Do insurance quotes affect credit score?

Wollit Team1 minute read · Updated 17th September 2024

If you’re worried that getting insurance quotes might hurt your credit score, this is the guide for you. Here’s how they can affect your credit score and what you can do.

What does credit score mean?

A credit score is a number that shows how good you are at borrowing money and paying it back, with higher numbers meaning you're less risky for lenders. Lenders use these scores to decide if they want to lend you money or give you certain services.

Your credit score depends on things like:

Whether you pay your bills on time;
How much debt you have;
How long you've had credit;
What kinds of credit you use;
And how often you apply for new credit.

Does getting insurance quotes affect my score?

When you get an insurance quote, there are two types of credit checks:

Soft checks: These are quick checks that don't affect your credit score. Insurers do soft checks to verify your identity and see how risky you are when you ask for a quote. Other lenders can't see these checks, and they disappear after 12 months.
Hard checks: These happen when you apply for a loan or credit agreement. If you pay for insurance monthly, sometimes insurers will do a hard check to see if you're creditworthy. Basically, they’re offering you a loan for the value of the annual insurance premium. Hard checks can lower your score because other lenders can see them, and they stay on your record for up to 6 years.

This means that when you simply get an insurance quote, either through a comparison site or directly from an insurer, they only do a soft check, which doesn't hurt your credit score at all.

How can I avoid a hard check for insurance?

To avoid hard checks, pay for your insurance upfront instead of monthly. This way, no credit agreement is made, and no hard check is needed.

But first, check with the insurer – most insurers don’t run credit checks. This is more common in the car insurance industry, since annual insurance is a legal obligation. These companies can’t sell you insurance just for a month or two..