DYK: Financial institutions use your credit score for credit card approvals, mortgage or loan applications. These are hard credit inquiries and will impact your individual credit score. When a credit score is asked for insurance, they are soft credit inquiries and will never have an impact on your individual credit score regardless of how many times a check is done.
Applications for habitational insurance (homeowner, tenant, condo...) have included credit consent authorization for several years; however, credit consent and discounting for automobile insurance is new, and Brokers must collect your consent either in writing or verbally.
How much can I Save?
Credit discounts may save you up to 25%* on your Automobile Insurance and more than 20% on your Home Insurance. Since a credit check cannot increase the cost of your insurance, we recommend that clients consent to a credit check for the best available rate.
Who can see my Credit Score?
Your broker can’t see your score. We provide your name, address and date of birth to a consumer reporting agency to retrieve your credit score, and we would never share your insurance history or other personal information. Your credit information is secure.
Could my Credit Score negatively affect me?
You will not be penalized if your credit score is low. Your premiums won’t increase and your policy will not be cancelled.
Interested in knowing your Credit Score? Many banks offer complimentary reports through TransUnion or Equifax. These agencies may also be contacted if you have questions regarding your credit score.
Excellent: 800 to 850 | Very Good: 740 to 799 | Good: 670 to 739 | Fair: 580 to 669 | Poor: 300 to 579
For more information, visit the Insurance Bureau of Canada (www.ibc.ca).
*Discounts vary by carrier.
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