A state licensed and vetted insurance agents gather your information, including your social security number to present directly to insurance companies on your behalf. The insurance companies will use that information to obtain a consumer credit report and an insurance claims history from credit reporting agencies like Experian and LexisNexis. They evaluate how often people who have had similar attribute as you incurred a loss then adjust their premiums. Someone they perceive as more likely to have an accident may have a higher premium than someone they view as less likely to have an accident.
Credit inquiries made by insurance companies do not impact your credit score. The only inquiries which impact your score are those used to obtain credit.