Applying for car insurance does not affect your credit score.
Although when you apply for car insurance or you get auto insurance quotes your credit score will be checked but it will only put a soft inquiry on your credit report.
When getting auto insurance quotes or applying for auto insurance they'll be a soft inquiry which does not affect your credit score or credit.
The soft inquiry differs from a hard inquiry.
Hard inquiries appear when you've given someone permission to check your credit report in order to process a credit or loan application these can also lower your score.
Soft credit inquiries don't harm your credit score but do involve someone checking your score.
Soft inquiries do not affect credit scores and are not visible to potential lenders that may review your credit reports.
They are visible to you and will stay on your credit reports for 12 to 24 months, depending on the type.
Soft credit inquiries have no impact on your credit score.
If a lender checks your credit report, soft credit inquiries won't show up at all. Soft inquiries are only visible on consumer disclosures—credit reports that you request personally.
Fortunately, buying car insurance isn't difficult whether you've had insurance in the past or not.
It may be more expensive for first-time car owners, though, and it's important to research the insurance in advance prior to purchasing the policy so that you know for sure what you're getting into.
You will need to buy car insurance before purchasing your car.
It's illegal to drive without car insurance in every state except New Hampshire and Virginia.
So, you will need to have at least the minimum liability insurance anytime you're behind the wheel.
Among national insurers, USAA has the cheapest rates, at $36.00 per month, with State Farm in second place, at $44.00 per month.
The cheapest local company is Farm Bureau, at $39.00 per month.
You can also get cheaper auto insurance rates by bundling your auto insurance with renters insurance, condo insurance, homeowners insurance or by adding multiple vehicles to the same auto insurance policy.