How Your Credit Score Affects Auto Insurance Rates in South Carolina (And What Drivers in Myrtle Beach Should Know)

By Brad Davis, CIC (February 13, 2026)
Davis Insurance Associates – Myrtle Beach, South Carolina

If you have ever wondered how your credit score affects auto insurance rates in South Carolina, you are not alone. Many drivers in Myrtle Beach and throughout the state are surprised to learn that insurance companies may consider credit-related information when calculating premiums.

But here is something important to understand right away. Insurance companies are not using your traditional credit score the same way a bank does. Instead, they often rely on something called an insurance score, which is designed specifically to help predict insurance risk. Understanding the difference can help you make smarter decisions when shopping for coverage.

As an independent agency serving Myrtle Beach and the surrounding Grand Strand, we get questions about this topic almost daily. Let’s break it down in simple terms.

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What Is an Insurance Score and How Is It Different From Your Credit Score?

When people hear that credit affects car insurance rates, they immediately think of the number they see on their credit monitoring apps. In reality, insurance carriers usually use a separate formula called an insurance score.

An insurance score may consider factors such as:

• Payment history

• Length of credit history

• Types of accounts

• Outstanding balances

• Recent credit activity

However, it is not the same as your traditional FICO or Vantage credit score.

Insurance companies use this information because studies have shown correlations between certain financial behaviors and the likelihood of insurance claims. It does not mean someone with lower credit is a bad driver. It simply means carriers use data to help estimate overall risk.

Here is an article from NAIC – Credit-Based Insurance Scores Aren’t the Same as a Credit Score. Understand How Credit and Other Factors Determine Your Premiums 

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Does Checking My Credit for Auto Insurance Hurt My Score?

This is one of the biggest concerns we hear from Myrtle Beach drivers. The good news is that most auto insurance companies perform what is called a soft hit or soft inquiry.

A soft hit:

• Does not impact your credit score

• Is not the same as applying for a loan or credit card

• Is typically not even visible to you on your credit report

That means requesting a car insurance quote is very different from applying for financing on a vehicle or home. Many drivers avoid shopping their insurance because they think it will hurt their credit, but in most cases that simply is not true.

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Why Do Insurance Companies Use Credit-Based Insurance Scores?

Insurance carriers look at a wide range of information when determining rates. In South Carolina, factors like driving history, claims history, vehicle type, mileage, and location all play major roles.

Credit-related data is just one piece of a much larger picture.

Here is why carriers include insurance scores:

• To help predict claim frequency and severity

• To better match pricing with overall risk

• To create more accurate rating models

Different companies weigh insurance scores differently. Some carriers are more sensitive to credit-related factors, while others focus more heavily on driving record or vehicle type. That is one of the biggest advantages of working with an independent agency that can compare multiple companies.

Here is an article from Insurance Information Institute – Background on: Insurance Scoring for additional information. Insurance scores have been around for some time now, there are plenty of articles and videos about this topic on the internet.

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How Credit Can Affect Auto Insurance Rates in Myrtle Beach

Drivers in the Myrtle Beach area often ask how much credit really impacts their premium. The honest answer is that it varies.

For some drivers, strong credit-related factors may help qualify for better pricing tiers. For others, changes in credit behavior could influence renewal premiums over time.

Here are a few real-world scenarios we commonly see:

• A driver with clean driving history but weaker insurance score may pay more than expected.

• A driver improving their financial habits may see better options when switching carriers.

• Two drivers with identical vehicles and driving records may receive different rates because of insurance scoring differences.

The key takeaway is that your credit profile is only one factor, not the only factor.

💡 TIP – An improved credit score may be a sign that your insurance score is also better. If it has been a while (one or more renewals) since you began your auto insurance policy, reach out and discuss this with your agent. In some cases, we are able to request that the insurance carrier take another look at your insurance score and potentially lower your premium.

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Can You Still Get Affordable Car Insurance With Lower Credit?

Yes. This is where working with a local agency makes a difference.

Every insurance company has its own underwriting guidelines and pricing structure. Some carriers are simply a better fit for certain profiles than others.

At Davis Insurance Associates, we regularly help South Carolina drivers find competitive coverage by:

• Comparing multiple insurance carriers

• Reviewing discounts and bundling opportunities

• Adjusting coverage options to match real-world needs

• Looking at long-term pricing stability instead of just a quick quote

Even if your insurance score is not perfect, there may still be strong options available.

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Tips to Help Improve Your Insurance Score Over Time

While you cannot control every rating factor, there are some habits that may help improve how insurance companies view risk over time:

• Make payments on time whenever possible

• Avoid opening too many new accounts at once

• Keep older accounts active if appropriate

• Maintain a stable insurance history without lapses

• Review your credit reports periodically for errors

Improvement does not usually happen overnight, but small changes can make a difference over time.

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Get an Auto Insurance Quote From Davis Insurance Associates

If you are wondering how your credit score affects auto insurance rates in South Carolina, the best way to find out is to compare real options. Every driver’s situation is different, and the right company for one person may not be the best fit for another.

👉 Drivers in Myrtle Beach and across South Carolina can request a personalized Auto Insurance Quote from Davis Insurance Associates today. We will review multiple carriers, explain your coverage clearly, and help you find a balance between price and protection.

Our goal is simple. Make car insurance easy to understand and help you feel confident in your coverage.

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Final Thoughts

Credit-related factors can influence auto insurance pricing, but they are only part of the bigger picture. Understanding the difference between a credit score and an insurance score, knowing that most quotes involve only a soft inquiry, and working with an experienced local agency can make the process far less confusing.

If you have questions about your current policy or want a second opinion, our team here in Myrtle Beach is always happy to help.

Disclaimer:
This article is for general informational purposes only and is not a guarantee of coverage, pricing, or underwriting eligibility. Insurance policies, insurance scores, and rating factors vary by carrier, and only the actual policy language and a licensed insurance professional can determine how coverage applies to your specific situation.