Lenders look at your credit report when you apply for credit, such as a loan or mobile phone contract. Car insurers can also use credit information. This guide explains when they check it, what kind of search they use and how it can affect what you pay.

ClearScore is a credit broker, not a lender.

Will insurers check my credit score?

When you get a car insurance quote, insurers usually check your credit report rather than a credit score. They use it to confirm details such as your name, age and address. Credit information can also be used to help decide whether to offer cover, how much the premium should be and whether you can pay in instalments (LexisNexis Risk Solutions, which carries out these checks for insurers). This quote-stage check is a soft search. It doesn't affect your credit score and other lenders can't see it. Only you (and the credit reference agency) can see it.

When do insurers run a hard search?

If you choose to pay monthly, you usually enter into a credit agreement. This may be with the insurer or with a separate lender arranged by the insurer or broker. This usually involves a hard search of your credit report. The lender can then see your credit accounts and payment history. Settled accounts generally stay on your report for six years.

Hard searches are visible to other lenders who check your report. According to Experian, most hard searches stay on your credit report for 12 months. Several hard searches in a short period can affect your score for around six months.

Does getting a car insurance quote affect my credit score?

No. Getting a quote only involves a soft search, which doesn't affect your credit score. If you then take out a policy and pay monthly, a hard search is usually carried out, and this is recorded on your credit report.

Can my credit history affect car insurance costs?

It can, in two ways.

The premium itself. Some insurers use credit information when pricing a policy, so your credit history may affect the price you're quoted, whether you pay upfront or monthly. Insurers also look at many other factors, such as your age, job, where you live, your car and your claims history.

Paying monthly. Many insurers and brokers charge interest if you pay in instalments, so you pay more over the year than if you paid upfront. Some charge 0%, though this is less common for car insurance than for home insurance. The FCA found that in 2023 less than 3% of motor insurance premium finance was interest-free, compared with more than a third for home insurance (FCA premium finance market study, final report, 3 February 2026).

The FCA also reported weighted average APRs among the firms in its sample as at 1 January 2026. These were 16.5% for insurers, 23.5% for intermediary lenders and 29.4% for intermediary brokers. They are averages across those firms, not the rate any one customer will be offered. In a survey of car insurance brands in February and March 2026, Which? found APRs of up to 29.9% (Which?, 16 June 2026).

The FCA found that the interest rate for paying monthly is usually a fixed percentage set for a brand or product, not for each customer. It isn't typically varied according to an individual's credit risk, although some insurers are looking at doing so. Your credit history is more likely to affect whether you're offered monthly payments at all. The APR must be shown to you before you agree to a credit agreement, so check it alongside the premium.

How do I check my credit report?

The UK has three main credit reference agencies (CRAs): Equifax, Experian and TransUnion (formerly Callcredit). Each uses its own scoring scale and bands, so your scores won't match across agencies. Not every lender reports to all three, so your reports can differ too. You may want to check your report with each of them: Equifax, Experian and TransUnion.

Lenders use their own scoring systems and lending criteria, so their assessment can differ from the credit score you see from a credit reference agency. There is no single score used by every lender.

You can see your Equifax credit score and report for free with ClearScore.

If something on your report is wrong, raise it with the credit reference agency. If the error came from a lender or another organisation, you may need to contact them too. You can add a notice of correction to explain an entry. If an obvious error isn't put right, you can complain to the Information Commissioner's Office.

Paying for car insurance with a poor credit history

Where monthly payments carry interest, paying the full premium upfront costs less overall than paying the same premium in instalments. Where an insurer offers 0% monthly payments, the total is the same either way.

Some people pay the annual premium with a credit card. With a 0% purchase card, you only avoid interest if you clear the balance before the promotional period ends. After that, the card's standard rate applies. A large balance can also increase how much of your available credit you're using, which may affect your credit score. Whether you're offered a card, and on what terms, is up to the card provider. Eligibility and acceptance are decided by each insurer or lender and depend on its own criteria and checks. Checking your eligibility does not guarantee that you'll be accepted.

Other factors that can affect the price of car insurance include:

• Adding a named driver (this doesn't always lower the price)

• Your car's security features

• Your estimated annual mileage (giving an accurate figure avoids paying for miles you won't drive)

• Your voluntary excess (a higher excess can lower the premium, but you pay more if you claim)

• Your no-claims discount, which usually grows with each claim-free year up to a limit set by the insurer

Since 1 January 2022, insurers can't quote a renewal price higher than they would charge a new customer buying the same policy through the same channel (FCA). Other insurers may still quote different prices, so comparing quotes at renewal shows the range available to you. This guide doesn't cover every insurer or policy in the market.