Our communications department has gotten calls about the insurance implications of the Equifax breach and what might happen to your rates if you freeze your credit. The answer, for most people, is not much. Insurers, where legal, look at your credit information when you first become a customer – when you first applied for coverage. They don’t re-evaluate unless you ask them to – something to keep in mind if you think your credit has improved. (This last is also subject to state laws – some states require a re-evaluation.) So, if you freeze your credit, there’d typically be no impact with the insurer you already have.
If you are shopping for insurance, the fact that you have applied for a policy, in most states, means that you have given permission that transcends your freeze order. So, the insurer would be able to use the information in its rating (as always, where legal.)
We also got a lot of other good information from Fair Isaac (inventor of the credit score). We will share that in a future post. . .. .