Switching car insurance itself does not directly impact your credit score. However, certain factors related to the process can have an indirect influence.

Factors that may affect credit score

  • Credit inquiries – When obtaining quotes from different insurers, they may perform a “soft” credit inquiry. This type of inquiry doesn’t harm your credit score. However, too many inquiries in a short period may have a slight negative impact.
  • Payment history – Timely premium payments contribute positively to your credit score. However untimely payments might affect your credit score.
  • Cancellation of old policy – Canceling your old policy won’t affect your credit score directly, but avoiding any outstanding payments or fees is essential.
  • New policy’s terms – If you opt for an approach with installment payments and miss them, it could negatively impact your credit score.


Switching car insurance doesn’t have a significant direct impact on your credit score. Be mindful of credit inquiries and maintain a good payment history. The key is to choose a new policy that suits your needs and budget while keeping up with premium payments to maintain a positive credit history.

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