We all know your credit history affects your finances. It impacts your ability to borrow money from a bank. It can increase the interest rate you are charged for a loan on your car or home. But did you know many insurance companies will pull your credit score and use it as a factor to determine the premium you pay?
Beyond worrying that a boat insurance company may use your credit score to charge you a higher premium, there are two questions you should ask if a company seeks to pull your credit when providing a quote for boat insurance. First, will pulling my credit score affect my credit? You probably do not want to risk a hit to your credit score when obtaining quotes for boat or watercraft insurance.
An insurance company can check your credit score in one of two ways and it is important to understand the difference. A “hard pull” commonly occurs when you fill out an application for a loan or credit card. The financial institution will determine the terms of their offer based upon your credit report. This means the rate you pay or the amount you can borrow is impacted by their findings. A hard pull will always have a negative impact on your credit score. You should consider whether this is really necessary when obtaining insurance on your boat.
A “soft pull” occurs when a company simply checks your score, the same way that you may check your own credit score. Many insurance carriers claim that they run soft pulls that will not hurt your credit score. However, many consumers have found that these pulls are in fact hard and negatively affect their credit scores. If you make it through the insurance quote process with a company that pulls your credit score, one thing is certain. The premium that company charges you for coverage on your boat or watercraft is absolutely affected by what it sees on your credit report.
The second question you should ask is do ALL boat insurance companies use credit scoring and if not, are you better off using one who does or doesn’t?
SkiSafe never requests a credit report and will not check your credit score. We all have to manage complicated budgets which include rent or mortgage payments, fuel, food, and day to day family expenses. But SkiSafe does not believe that your family budget should determine if you are a safe boater.
SkiSafe does NOT ask for your social security number or for other information about your financial background. What does SkiSafe ask? We will ask about your boating experience and loss history. We will ask where you store your boat. We’ll probably ask if you use it year round, because if not you might qualify for an additional discount. We want to know that you are a safe boater and not about your household finances because we are providing you with premier boat insurance.
Our goal is to offer the lowest possible rate to safe boaters. Let us know if you agree that we need to know about your boating habits, experience and history rather than your credit score in order to make this happen by visiting us at www.skisafe.com.