Does Car Insurance Affect Your Credit Score?

1. 

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   David Osgood

   Agent, Rural Mutual Insurance Co., Union Grove, WI

   Your auto insurance should not affect your credit score unless of course you do not pay your premiums on time. An insurance company could turn you over to a collections company to attempt to retrieve owed premium. Every state has it's own regulations and every company it own standard for this sort of thing. To know for certain contact your local agent.

   Answered on April 25, 2013

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2. 

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   Jack Heller

   Owner, Insurance Browser,

   generally speaking the answer is no. Insurers use credit information in-bedded in insurance scores. But it does not flow backwards as your question asks, There are two types of scores in most transactions involving credit. There are instances where the requester has to advise you that you are, are for example seeking a loan or credit card. Those are considered "hard " hits to your credit. By seeking that type of loan you are in fact telegraphing to others I need the money. Insurance scores typically are "soft " hits, that is to say they look at information but do not impact the result. i have run a couple insurers and worked for several others and I have never seen an issue with this being a hard hit

   Answered on November 14, 2013

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