Will a “Fraud Alert” prevent my auto insurance to be renewed?
May 18, 2010 by
Filed under identity theft insurance
Hi,
I want to put a “fraud alert” on my credit to prevent possible identity theft. I am wondering if my insurance company can still check my credit history after I put that alert. I am concerned that they cannot check the history and they don’t renew my policy or maybe increase my premium. I appreciate if you can advise.
They can and they will pull credit, but putting the fraud alert will not hurt you at all. Granters of credit will always pull a report and even though the insurance company is not a conventional creditor, this likelihood is becoming more common. There may be credit pulled in new job applications, too.
After you get your insurance renewed, you can request a credit freeze. It bars lenders and others from reviewing an individual’s credit history.
The only thing a “Fraud Alert” does is require the creditor to take additional steps to verify it is actually you.
This basically will cause any “Instant Credit” applications to be declined. However, if you already have Insurance the company knows it is you so they would not need to do any additional verifications.
Now, if your credit has changed since the last time you renewed and they check your credit again it could increase. But it would be a result of the change in your credit status rather than the Fraud Alert.