Vision Credit Education, Inc.

Inquiries from insurance companies do not affect your credit scores. These requests for credit are classified as a type of soft inquiry, in which your credit scores are not affected by the request for a credit report. Each request for your credit report by an insurance company is recorded, as are all inquiries.

An insurance inquiry results when an insurance company requests your credit report as a part of its underwriting process. The insured experience fewer losses when they have higher credit scores. There are two main reasons why insurance companies require a credit check prior to approving an insurance application.

1. Individuals with good credit scores show financial responsibility. It is believed that financial responsibility is an indicator of responsible driving habits and proper maintenance of insured property.
2. Individuals with poor credit scores tend to have increased claims and higher incidents of insurance fraud.

In any case, these inquiries by insurance companies are recorded on your credit report, but they do not affect your credit scores.