A client asked us recently: “My credit score went up a lot this year. Will that lower my insurance?” It’s a good question, and the answer surprises most people.
Yes, credit is part of your rate
Most carriers that write auto and homeowners insurance in Oklahoma use a credit-based insurance score as one factor in pricing. Plenty of people don’t like it, and some don’t know it happens at all, but it’s been standard practice for decades and isn’t likely to change.
Checking it won’t hurt your credit
When a carrier looks at your credit for insurance, it’s a soft inquiry, not the hard pull a lender does for a mortgage or a credit card. It doesn’t lower your score, and it doesn’t show up to lenders.
Your carrier doesn’t watch your score
Carriers generally check credit when you first get a quote or start a policy. They don’t keep monitoring it after that. So if your score improves, your carrier won’t automatically know, and your rate won’t automatically change.
How to get credit for better credit
If your credit has improved meaningfully, we can ask your carrier for a re-score. They re-run your insurance score with another soft inquiry and see whether it moves your rate.
Carriers limit how often they’ll do this, so it’s worth asking after a real change, like paying off a large balance or clearing up an old collection, rather than every year. You’re the one who knows when your credit has changed, so let us know and we’ll make the request.
And if your current carrier won’t budge, that’s a good time to shop. Carriers weigh credit differently, and as an independent agency we can compare several of them for you.
Have a question about how your rate is figured? Give us a call. We’re happy to go through it with you.
