Yes, insurers run your credit when you buy renters insurance. Because people with better credit are statistically less likely to file insurance claims, most insurance companies offer cheaper rates to people with high credit scores. Conversely, if you have a history of credit trouble, your insurer will probably charge you more for renters insurance.
You can get renters insurance with no credit check in a few states, such as California, that prohibit insurers from factoring in your credit when determining your premiums. However, these states are the exception, not the rule.
Shopping for renters insurance won’t affect your credit score
When insurers check your credit score, they use what’s referred to as a “soft pull,” which doesn’t affect your score at all. You can shop around for different insurance policies from as many providers as you like before making a final decision — none of their credit checks will affect your score.
How to get cheap renters insurance with poor credit
Renters insurance is generally affordable, so even if you have a low credit score, it still won’t be too expensive. You can lower the price even further by:
- Agreeing to pay a higher deductible
- Installing safety features in your home, like burglar and fire alarms
- Bundling your policy with another type of insurance, like auto insurance
- Paying for your policy upfront instead of month-to-month