Does changing my insurance company affect my credit score?

Q:

Does changing my insurance company affect my credit score?

A:

Under normal circumstances, changing insurance companies will not affect your credit score. People and businesses change insurance companies frequently in search of better coverage, better prices, or better service. In fact, any good insurance agent or broker would shop around to find you the best deal once policy renewal time approaches (for advice on finding a good agent, see 5 Questions to Ask Before Choosing an Insurance Agent).

There are, however, two exception. The first is changing insurers because your previous policy has been cancelled for non-payment. The second is doing so because you have outstanding debts owed to the insurance company. In either of these situations, there may be derogatory marks placed on your credit history, which will negatively affect your credit score.

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About the Author: (Director of Education at PNC Learning)

Jacques grew up around the insurance industry and began actively participating in 2013. Since then, he has gotten a Level 2 license, won Insurance Council of BC awards in 2015 and 2020 for academic excellence in the insurance licensing courses. He educates insurance professionals through PNC Learning and as a Thought Leader at ReFrame Insurance.

In his day job as an insurance broker, he helps businesses with creative risk management solutions and strategic advice when it comes to insurance.

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