There are a lot of rating factors used in determining homeowners and personal auto insurance rates. Some of the factors lower your cost of insurance premiums, and some may raise the cost of insurance. One such factor is your credit.
Some people have absolutely no idea that credit is used in the rating calculation, but it has been for several years. Credit scoring does not “pull” your credit like a lender or credit card company does. There is no record of the credit score or negative impact on your credit score. This is considered a soft inquiry not a hard inquiry.
When does credit play a role in insurance rates?
It’s important to understand that insurance companies don’t continuously check or monitor your credit. Usually, they only check it when you first get a quote and/or sign up with them in the very beginning.
This means that if your credit score increases, or decreases, your insurance company does not automatically know about it. If you know that your credit score has significantly improved, let your agent know, and we can soft pull it again or rescore and decrease your personal insurance rates.
At Widener Insurance Agency, Inc., your insurance rates are very important to us.