car insurance credit check

claire1011

hi
i have just checked my equifax file. swinton motor group did a credit search after i did an online quote. i did not buy this policy. can they do this? i have contacted equifax and am awaiting a reply.
thanks

huckster

Yes they mostly all do this. It is a soft quotation check on your credit record, that no one can see apart from you and does not affect your credit record.

They use the check to see whether to offer monthly payment and some Insurers will also use this for rating purposes. If you have a look on the Direct Line site under questions asked, you will see any explanation as to how they use credit checks.

forgotmyname

Been a few posts on this recently and its normal.

They just want to make sure you are a real person and credit worthy.

kingstreet

It may not even be a credit check. Insurers have been carrying out identification/address checks for years and these show as "unrecorded enquiry" which is unseen by anyone but you and has no effect on your credit history as it does not mark an application for credit.

InsideInsurance

Above is not strictly true for all insurers!

Some do a full search and it is recorded as "insurance quote" or something similar which is visible to others. That said, a lender would be a bit odd to decide you are a credit risk because you are applying for insurance but ultimately it is their decision!

Some insurers are using credit rating as a rating factor so your premium is affected by what they get back from the agency

claire1011

thanks everyone, i am in the middle of moving house and am getting quotes under the new address which may cause issues. if i have a low credit rating but want to pay for the new policy in one go am i likely to run into problems?

Quentin

No .

claire1011

thanks quentin, im assuming the policy will just cost more?

Quentin

claire1011 wrote: »

thanks quentin, im assuming the policy will just cost more?

Most have gone up this year, but your new address may be in a cheaper to insure postcode than previously, which might help! And paying one lump sum is usually a lot cheaper thanj on the drip!

F_T_Buyer

I have 6 insurance checks against my credit record from Swinton Group (insurance). I have never done a quote direct with them, but have through go compare. I only did one search (and use that to barter with my current insurer).

I always pay in full, and put this down, so I'm annoyed I have all these searches! I do this every year, and never had this done until I bought the insurance.

Quentin

It won't impact your rating.