Soft Credit Check: How It Can Benefit Your Insurance Rates
Did you know the biggest insurance discount a person can receive is through having a high credit score?
In order to have a high credit score (650+), you need a history of paying your bills on time. According to an Insurance Bureau of Canada report, insurers in Canada have also directly correlated having a high credit score to a low probability of having a claim on your home or car.
To find out if you qualify for a good credit discount, Surex asks customers if they’d mind if we do a soft hit on their credit score.
What is a soft hit on a credit score?
Some people can be wary of a soft credit hit. If you’re worried about it having negative repercussions, soft hits do not affect your credit score.
A soft credit hit is a non-intrusive way for a company, having been consented by you, to see if you qualify for additional savings due to your history of paying what you owe.
How much can you save on insurance?
Every insurance company will offer different savings amounts, depending on what your credit score is. The amount offered will also depend if it’s home, auto or condo/tenant insurance you’re looking for.
As a brokerage partnered with over 10 insurance companies, Surex will get you a good credit discount, if you qualify. The largest good credit discount, for home insurance, we’ve seen from one of our partners is 62%. With auto insurance, we’ve seen good credit produce a 32% discount for a customer.
Again, those are the highest discounts we’ve seen through our partners. A realistic expectation, for those who qualify, is in the 20-40% off range.
Most insurers will offer a good credit discount. If they don’t currently, they know they need to soon or risk being priced out of the market.
Dispelling 3 credit fallacies
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Income factors into credit score.
Low income and poor credit aren’t synonymous, just as high income and high credit don’t always go hand-in-hand. Even if you’re in a lower tax bracket, you can still have a great credit score and stand to save a large amount on your insurance.
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There aren’t many ways to improve credit score.
Alluded to previously in this article is the importance of paying your bills on time. Here is a link that provides five ways to improve your credit score. Included in the article is a tip on managing your credit card use.
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Consent is permanent.
If you give consent to a company to do a soft hit on your credit score and, for whatever reason, change your mind, that is OK. If you give consent to a company, that consent is maintained for the duration of your relationship with them, unless you state otherwise.
See for yourself how you would benefit
Completing an online home, auto or condo/tenant insurance quote takes 5-10 minutes. If you want to see if you’re getting the good credit discount and the affect it has on your premiums, you’re welcome to do a quote without a soft hit on your credit score and one with a soft hit on your credit score.
As always, if you have any questions, your personal broker will be able to assist you on your way to a great insurance rate!
