Do Home Insurance Quotes Run Your Credit? Here's What Actually Happens

When you’re shopping for home insurance, you might notice that insurers ask for your Social Security number early in the process. That’s when the worry kicks in: Are they running my credit? And if they are, will it hurt my score?

The short answer: most home insurance quotes use a soft credit pull - not a hard one. That means your credit score won’t drop. But not all insurers do it the same way, and not every state allows it at all. Let’s break down exactly what happens when you get a quote, why they do it, and how you can protect your score.

Why Do Home Insurers Check Credit?

It’s not about whether you’re good with debt. It’s about predicting risk. Insurance companies have found, through decades of data, that people with higher credit scores tend to file fewer claims. That doesn’t mean someone with bad credit is more likely to have a fire or burglary - it means they’re statistically more likely to file a claim over time. That’s why insurers use credit-based insurance scores.

This score is different from your FICO or VantageScore. It’s built using some of the same data - payment history, outstanding debt, credit age - but it ignores things like income, employment, or medical collections. The goal? To predict how likely you are to become a claim risk. A 2023 study by the Federal Trade Commission found that credit-based insurance scores were better predictors of future claims than driving records or past claims history.

Soft Pull vs. Hard Pull: What’s the Difference?

Not all credit checks are created equal. There are two types:

• Soft inquiry: Used for background checks, pre-approved offers, or insurance quotes. Doesn’t affect your score. Only you can see it on your credit report.
• Hard inquiry: Happens when you apply for a loan, credit card, or mortgage. Drops your score by a few points and stays on your report for two years.

Home insurance quotes almost always use soft pulls. That’s because you’re not borrowing money - you’re asking for a price estimate. You can get quotes from five different insurers, and your credit score won’t budge. Hard pulls only happen if you actually sign up for a policy and the insurer needs to finalize your underwriting - and even then, it’s rare.

Do All Insurers Check Credit?

No. And where you live matters a lot.

California, Maryland, and Massachusetts ban the use of credit scores for home insurance pricing. In those states, your credit history can’t influence your quote at all. Insurers there base rates on things like home age, location, claims history, and security systems.

In the other 47 states, most major insurers - like State Farm, Allstate, Progressive, and Liberty Mutual - use credit-based insurance scores. Smaller regional companies might not. Some online-only insurers, like Lemonade or Hippo, rely more on smart home data or property details than credit history.

If you’re unsure, ask directly: “Do you use a credit-based insurance score to determine my premium?” Legally, they have to tell you.

What If I Have Bad Credit?

Having a low credit score doesn’t mean you can’t get home insurance. It just means you might pay more. But there are ways to reduce the impact.

• Shop around: Some insurers weigh credit less than others. One company might charge 20% more for a 620 score, while another only adds 5%.
• Improve your score before quoting: Pay down credit cards, fix errors on your report, and avoid opening new accounts in the 3-6 months before applying.
• Ask about discounts: Bundling with auto insurance, installing a security system, or having a new roof can lower your rate enough to offset a lower score.

Also, remember: your credit score isn’t static. If you’ve improved your finances since your last quote, get a new one. You might save hundreds.

Can I Get a Quote Without a Credit Check?

Yes - but it’s not always easy.

In California, Maryland, and Massachusetts, you automatically get a quote without a credit check. Elsewhere, you can still ask. Some insurers offer “no credit check” options, but they’re often limited to specific programs or higher premiums.

One workaround: use an independent agent. They can compare policies across multiple carriers and often know which ones are more lenient with credit. They can also tell you upfront if a quote will trigger a soft pull.

There are also niche providers like Assurant or USAA (for military families) that focus on high-risk or non-traditional applicants and may skip credit scoring entirely.

How Often Can They Check My Credit?

Insurers can check your credit once per policy term - usually every year when you renew. But they can’t check it again just because you asked for a quote. If you switch insurers mid-term, the new company will run a fresh soft pull. That’s normal and harmless.

Here’s what you won’t see: insurers checking your credit every time you call for a price update. That’s a myth. You can request quotes as often as you want. Each one is a soft pull, and soft pulls don’t stack up or add up.

How to Protect Your Credit While Shopping

Even though soft pulls don’t hurt your score, it’s smart to be strategic:

1. Get quotes within a short window: If you’re comparing multiple insurers, do it within 14 days. That way, if any insurer does a hard pull (rare), they’ll count as one inquiry.
2. Check your credit report first: Look for errors. A mistake could inflate your insurance score without you knowing. Get your free report at AnnualCreditReport.com.
3. Ask for a copy of your insurance score: If you’re denied coverage or hit with a high rate, you’re legally entitled to know your score and what affected it.
4. Don’t panic over one low score: Insurance scores range from 200 to 997. A score of 700+ is considered good. Even a 550 might still get you coverage - just at a higher price.

What Happens If I Refuse a Credit Check?

You can refuse. But the insurer can also refuse to give you a quote. In states where credit scoring is legal, they’re allowed to use it as part of their underwriting process. If you say no, they might say: “We can’t provide a quote without this information.”

That doesn’t mean you’re out of options. Just move on to another company. Some insurers don’t use credit at all. Others might use alternative data - like your payment history on utilities or rent - to assess risk.

Bottom line: refusing a credit check won’t hurt your score. But it might limit your choices.

Real-World Example: Two Quotes, One Person

Meet Maria, 42, in Texas. She has a credit score of 630 - below average. She got two quotes:

• Company A: Uses credit scores heavily. Quote: $1,850/year.
• Company B: Uses credit lightly. Quote: $1,320/year.

That’s a $530 difference - just because one insurer cares more about credit than the other. Maria chose Company B. She didn’t need to fix her credit. She just needed to shop smarter.

This isn’t rare. A 2024 Consumer Reports survey found that consumers who compared quotes from at least three insurers saved an average of $427 per year on home insurance. Many of them didn’t even know credit was a factor - until they saw the difference in prices.

Final Takeaway

Home insurance quotes don’t ruin your credit. They use soft pulls, which leave no trace on your score. But credit can affect your price - in most states. That’s why shopping around isn’t just smart - it’s essential.

You don’t need perfect credit to get affordable home insurance. You just need to know how the system works. Ask the right questions. Compare at least three quotes. And never assume one insurer’s price is the only one you’ll get.

Your home is your biggest asset. Don’t let a misunderstanding about credit cost you hundreds - or thousands - over time.