Does Geico Use Credit Scores? (2024)

FAQs

Does Geico Use Credit Scores? ›

Yes, Geico does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.

Credit-based insurance scores (discussed in detail below) are based on information in your credit report. The first thing you should know is that if GEICO does obtain a credit-based insurance score as part of calculating your insurance quote, the inquiry is labeled as being from the insurance company.

In most states, insurers can consider your credit history when deciding whether to insure your home and when calculating your monthly premiums. (California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah either prohibit or greatly restrict credit-based insurance decisions.)

Getting a car insurance quote should not affect your credit score. Car insurance companies do a "soft pull" when you get a quote, which doesn't influence your credit score. In contrast, a "hard pull" credit check impacts your credit score. Soft pulls only check some basic info and have no impact on your credit score.

In most states, insurers can use your credit-based insurance score to determine your premiums.

So, if you're worried about car insurance companies pulling your credit negatively impacting you, rest assured they only do a soft pull. Credit takes into account hard inquiries which are things like applying for loans.

Most insurers use credit checks to create a credit-based insurance score to help set your rate. Some insurers provide auto insurance with no credit check, which might seem appealing if you have a poor credit history.

The car you drive, how often you drive it, and where it is kept are all factors used to determine your rate. A car's make and model help determine: Expected repair costs. If theft rates are higher for this vehicle.

Your insurance rate won't go up as a result of your first otherwise surchargeable, at-fault accident. Subsequent occurrences do not qualify for Accident Forgiveness. Accident Forgiveness eligibility is determined by your specific policy type, as well as your state laws and regulations.

According to the III, if you have a better credit-based insurance score, an excellent driving history, and zero claims on your record, you'll typically qualify for lower rates. This score is only one of many factors used to calculate your premium.

What is considered a good credit score? ›

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

An insurance score is a score calculated from information on your credit report. Credit information is very predictive of future accidents or insurance claims, which is why Progressive, and most insurers, uses this information to help develop more accurate rates.

Yes, Geico does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.

California

Insurance companies in California don't use credit-based scores or your credit history for underwriting or rating auto policies, or setting rates for homeowners insurance. As a result, your credit won't impact your ability to get or renew a policy, or how much you pay in premiums.

Car dealers can choose between many credit bureaus and credit scoring models when they evaluate auto loan applications. The fundamentals behind credit scoring models for consumers are similar, but each one uses slightly different criteria to analyze your credit report and assign a score.

Using the LexisNexis Risk Classifier, an insurance score of 770 or higher out of 997 is considered good and will get you a favorable premium.

Using the sensors in your phone, the GEICO Mobile app automatically logs your driving behaviors—like how hard you brake, how far you drive, and how often you use your phone—and calculates a safe driving score. GEICO then factors your score into your insurance rate.

Your insurance rate won't go up as a result of your first otherwise surchargeable, at-fault accident. Subsequent occurrences do not qualify for Accident Forgiveness. Accident Forgiveness eligibility is determined by your specific policy type, as well as your state laws and regulations.