As a consumer you are worried about what kind of enquiries into your credit report might affect your credit score. An enquiry is when a business or an individual such as a landlord or an employer or any other authorized personnel under the fair credit reporting act makes the request to the National credit bureaus to view your credit report. These can enquiries are majorly categorized under hard enquiries and soft enquiries. We have covered the difference between the hard and soft enquiries in another article. Click here to read more about what enquiries are considered hard enquiries and which ones are considered soft enquiries.
Soft enquiries do not affect your credit scores for the simple reason that they are not shown to your creditors at any point of time. A soft enquiry is only reported in your credit history for your viewing and crosschecking when to order your personal copy of your credit report. Since insurance enquiries are soft enquiries and are not provided to lenders they are not considered in credit score calculation or lending decisions. Other kind of enquiries that fall under the same category of soft enquiries are enquiries made for employment purpose, preapproved credit card offers and requests made from you for a personal credit report.
The reason as to why soft enquiries like insurance enquiries are recorded in your credit report at all in spite of the fact that it will not affect your credit score is that so that you may be alerted as to whom all have tried to access your credit report in the past and also alert you to possible identity theft and fraud.