Does getting a home insurance quote affect my credit score?

3 min Read Published: 09 Apr 2024

Does getting a home insurance quote affect my credit score?

There are two types of home insurance; buildings and contents insurance. Buildings insurance protects your home against structural damage while contents insurance protects the items within your home. The type of home insurance you need can vary depending on a number of factors, including whether you own or rent your property. For more information on home insurance and the different types, read our article 'What are the different types of home insurance?'

One of the best ways to save money on your home insurance is to shop around but does it affect your credit score when you obtain a number of home insurance quotes? In this article, we look at whether your credit score is affected when taking out home insurance.

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Does a home insurance quote require a credit check?

When getting a quote for home insurance, insurers will run a soft credit search on your credit file. Insurers do this to check that the details you provide throughout the quote process are correct. These checks are known as soft searches and do not have an impact on your credit score. Soft credit searches can only be seen by you and so you shouldn't worry if there are multiple soft searches on your credit report.

There may, however, be instances where a home insurer will carry out a hard credit search on your file and this is likely to be when you agree to take out a policy. This is especially likely if you choose to pay your insurance premium monthly, as this is a form of credit agreement. One of the easiest ways to avoid this is by paying your premium annually and this could also save you money as Damien explains in the below video.

Does getting a home insurance quote affect my credit score?

Any hard search on your credit file is likely to impact your credit score as the company is carrying out a full check on your credit report to determine your suitability for the product you are applying for. Hard credit searches are visible to companies that access your credit report and numerous hard searches in a short space of time can negatively impact your score and may make you less attractive to lenders when you go to apply for credit in the future. One way to avoid this is by spacing out any applications for credit.

There are multiple credit reference agencies and not one credit score is the same as each has different criteria when determining your score. If you want to check your credit score or find out how to improve your credit score, visit our article 'The best way to check your credit score for free'.

Does my credit score affect the cost of home insurance?

There are many factors that determine the cost of your home insurance policy and they include your address, your previous claims history and also the size and location of your property. Another factor that lenders may consider, especially if you are opting to pay your home insurance monthly, is your credit score, as this helps them to determine how responsible you are when it comes to paying off your debt. If you have a poor credit score, lenders may decide to charge you a higher insurance premium, owing to the additional risk.

Can you get home insurance if you have bad credit?

It is likely that you will still be able to get home insurance if you have a poor credit score but you may be charged a higher premium than someone with a good credit score. However, if you have bankruptcies or CCJs you may find it more difficult to get a home insurance policy and as a result, may need to contact a specialist provider for a quote.

How to buy home insurance

One of the easiest ways to compare and purchase a home insurance policy is via a comparison site. We have partnered with Quotezone* so that you can search and compare cheap quotes from up to 50 UK home insurance providers.

Comparing home insurance policies allows you to compare multiple providers to get the best price. One thing to consider, however, is that not all comparison sites are whole of market so you may be able to get a better deal directly with the insurer. You may also wish to get quotes from providers that aren't on comparison sites, such as Direct Line.




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