It’s one of the questions we hear most often at Lighthouse Agency Insurance: does my credit score affect my insurance rates? The short answer is yes — in Ohio, most insurance companies use a credit-based insurance score as one of the factors in pricing homeowners and auto insurance.
Some people don’t like it, and some don’t know it happens at all. But insurers have used credit in their rating for decades, and understanding how it works can actually save you money.
Does an Insurance Credit Check Hurt My Credit Score?
No. When an insurance company looks at your credit, it performs what’s called a soft inquiry — the same type as when you check your own credit. It does not affect your credit score. This is different from the hard inquiry a mortgage lender or credit card company makes.
When Does Credit Play a Role in Insurance Rates?
Insurance companies don’t continuously monitor your credit. Typically, they only check it when you first get a quote or when your policy starts. That means if your credit score improves later, your insurance company doesn’t automatically know — and your rate doesn’t automatically change.
My Credit Improved. Can I Get a Lower Rate?
Possibly — but you usually have to ask. As your agent, we can contact your insurance carrier and request what’s commonly called a re-score: the company re-runs your credit (again, a soft inquiry) to see if your improved score qualifies you for a better rate.
- If your credit has improved significantly since you started your policy, a re-score may lower your premium
- If your credit went down, a re-score could raise it — so it’s worth talking to your agent first
- Re-score rules vary by carrier and state
The Bottom Line
Credit is just one of many factors in your insurance rates — along with your claims history, where you live, what you’re insuring, and the coverage you choose. If your credit has improved and you haven’t reviewed your rates in a while, it may be worth a conversation.
Want us to take a look? Call Lighthouse Agency Insurance at (513) 860-2552 or request a quote online and we’ll review your options across our carriers.