Insurance Shopping and FICO score

[Maxoman]

Hello all! I am an occasional poster but an everyday lurker and I need some advice. I want to take a good long look at my car and homeowners insurance. I'm wondering if I can do better and would like to shop around. Since I have had credit problems in the past due to a failed business, my FICO score isn't the greatest (although it is picking up! Go Me!). I looked on creditkarma, which says my score is 633. Creditsesame says 688. That is quite a difference, don't you think? Creditkarma says my auto insurance FICO score is 877. Is it worth shopping around with that score? And how do I go about shopping around? If I get rates from a handful of different companies, is that going to ding my score since they will do inquiries? Is it wise to get the new rates quoted to me all at the same time so I don't have too many inquiries spread out over time? I live in NY if that helps at all. Thanks so much!

[disneysteve]

I looked on creditkarma, which says my score is 633. Creditsesame says 688.
Creditkarma says my auto insurance FICO score is 877.

FICO scores only go up to 850 so it isn't possible to be 877.

Those sites don't/can't give you your actual FICO scores. You need to pay for those. Go to myfico.com and you can get them there.

Is it worth shopping around? Absolutely! It doesn't matter what your credit score is - you may still be able to find a rate lower than what you currently pay.

[snafu]

I suggest a detailed review of current coverage for each segment. You need to know exactly what is covered and whether you have extras like sewer back-up, flooding, what is and is not an Act of God. Do these amounts reflect the replacement values of home [building[s] only], furnishings and stuff. Pay-out is usually replacement value of your listed, used stuff. Check each detail of auto insurance. You will not get the amount owed or sum you want. You get the insurer's decision of value which is very location specific.

With a list of segments and value you want, there are several on-line sites. Talk to an independent insurance broker and ask your particulars be 'shopped.' You can often get deals when various insurance [life,home,auto] are packaged. Does your employer offer any discount plan?

[Maxoman]

Thanks for the replies. Ugh...why would creditkarma list 877 if the scores only go to 850? Could be because it is an auto insurance FICO score?

I am nervous I am going to get dinged on my FICO score because of insurance inquiries. I have no other inquiries in quite a while.

No discounts through employer.

[disneysteve]

I am nervous I am going to get dinged on my FICO score because of insurance inquiries.

Hard inquiries can impact your score but the key is to get all of the quotes in a short period of time as that limits the impact.

[Robert742]

Thanks for the replies. Ugh...why would creditkarma list 877 if the scores only go to 850? Could be because it is an auto insurance FICO score?

I am nervous I am going to get dinged on my FICO score because of insurance inquiries. I have no other inquiries in quite a while.

No discounts through employer.

The credit reports used by insurance companies do not affect your fico score. Insurance companies use their own formula to develop an insurance score, using your credit information, to rate home & auto insurance these days.

Yes, it pays to shop with all the leading companies, since some companies charge double for the same coverage. As mentioned by snafu, know your coverage, and get agent opinions from competing companies about improving your coverage, or pointing out any coverage gaps, which sometimes gets ignored when people shop to get the best price.

Review your coverage needs and shop your insurance each year, and you'll have the right coverage for you, at the best rates for which you qualify.

[disneysteve]

The credit reports used by insurance companies do not affect your fico score. Insurance companies use their own formula to develop an insurance score, using your credit information, to rate home & auto insurance these days.

Robert, how do they get your credit information? Don't they pull your credit report? If they do, don't hard pulls on your account affect your score?

[dfeucht]

Robert, how do they get your credit information? Don't they pull your credit report? If they do, don't hard pulls on your account affect your score?

I am pretty certain this is considered a soft pull. An individual applying for credit is a hard pull. It doesn't impact your credit score to have an insurance company pull your credit score for purposes of rating.

[derekashland]

As mentioned above, get your fico score from a trusted source such as myfico.com and don't be afraid to shop around. Its a pretty competitive market and companies will bend backwards to have you as a client.

[Robert742]

Robert, how do they get your credit information? Don't they pull your credit report? If they do, don't hard pulls on your account affect your score?

It's the not the hard pull, but the purpose of the pull affecting your fico. Credit reports ordered for insurance purposes are not an application for credit. Back in the day, insurance companies checking a customer's credit were considered a "soft pull" and supposedly would impact your credit score by a few points, if at all.

For the last decade, since it is near impossible to find an insurance company not using credit, where it is allowed by law, it does not affect your credit at all. I believe the Fair Isaac website says this as well.

Otherwise, everyone buying a home, applying for a mortgage, and needing home insurance would have their credit score lowered by getting home insurance quotes.

[disneysteve]

For the last decade, since it is near impossible to find an insurance company not using credit, where it is allowed by law, it does not affect your credit at all. I believe the Fair Isaac website says this as well.

Good to know. Thanks.