What happened to the good old days when you had a good driving record with no tickets or accidents, paid you insurance on time and your car insurance provider rewarded you for that with better rates? Now, if you or your spouse loses their job because of the economy and your credit suffers for that, many car insurance companies don’t care if you kept your payments up, they can still nail you with raised premiums or cancel your policy.
In today’s troubled world with the economy going in the tank, one of the big questions asked is, ‘Why do auto insurance companies do a credit check for auto insurance?’ It is a question that’s troubled many in the past, but now is more prevalent when getting auto insurance quotes. It’s federally mandated that everyone must have auto insurance coverage, how can the insurance companies deny, or charge exorbitant rates for something that has to be? That’s just the reason – since it is mandated, insurance carriers can pretty much do what they want.
Fortunately, there are a few companies that don’t check credit when issuing insurance. They’re not easy to find, but they are out there. No credit check auto insurance is a boon for those that have struggled and lost because of losing their job, or any other of a number of things that have happened in the last few years.
Why Is Finding No Credit Check Auto Insurance So Difficult?
Auto insurance companies think credit is related to risk. In other words, the better credit you have, the better driver you are. Not quite that simple, but they do see, as a group, that those who are more conscientious about their financial responsibilities are generally better drivers. Those with habitually bad credit tend to file more claims, falsify claims, and are considered an auto insurance risk. They go by trends in groups as opposed to individual situations. They have to, there’s no room for individualism in the cutthroat world of a car insurance provider.
Auto insurance quotes for those with poor credit can really be extremely costly. Even if you already have insurance, if you have a bad credit score, the insurance company can raise your premiums, move it to another company or cancel it altogether. An again, unfortunately, since their models of the past are still being used today, many good drivers are being denied good car insurance rates because the insurance companies have adapted to today’s current market. Heck, some of the large insurance companies are a part of the reason why this country’s economy has taken suck a nosedive.
Car insurance rates should be uniform and more about the individual’s driving record than what kind of credit they have, but they’re not. Unfair? Yes. But there’s very little that can be done about it unless somehow someone takes on the auto insurance industry. Until then, there’s very few options except finding a company that will consider the auto insurance risk as opposed to the credit risk of a driver.
How To Find No Credit Check Auto Insurance Policies
Finding car insurance quotes that don’t include a credit check are not readily available and you’ll have to search long and hard to find them. Perhaps one of your best options is to check online car insurance companies, there seems to be more options when you do. If you have a bad credit score it may hamper getting cheap car insurance so finding a company that doesn’t use credit check auto insurance rates can save you a lot of money.
There’s two ways to try and get cheap car insurance when you have bad credit. The first is to try and get your credit reports true and accurate but that takes time, time you probably don’t have but it’s still a good thing to do anyway. The other is to find an insurance company offering no credit check car insurance. There aren’t many but are worth taking the time to search them out and find them. It could save you a lot of money over time. Just remember to check out all your options and get a number of different quotes so you assure yourself of getting the best possible deal that you can.
Another way to find if there is a company offering no credit check auto insurance you can check with your state insurance department, or agency, and they can possibly give you information on which companies, if any, offer it. Even if you are a low auto insurance risk because of your past driving record, insurance companies will still charge higher rates for poor credit. Check with your state, online care insurance companies, and definitely do a comparison of insurance quotes to find the best deal you can.
Even if it didn’t apply to getting car insurance, if you have a bad credit score it’s worthwhile to check your credit agencies to make sure all the information in your credit report is true and accurate. If you can raise your score by fixing what’s in your report, it will save you money over time by reducing your car insurance quotes, therefore reducing what you pay. If you don’t have an insurance agency offering car insurance without checking your credit in your state, this may be one of the ways you can get reduced rates.
No credit check auto insurance is not easy to find and when you do, take advantage of what they offer. Just to play it safe though, get a few other insurance quotes just to make sure you’re really are getting a better rate. Some companies may offer no credit check auto insurance, but make sure that’s really what you’re getting by comparing rates. They may offer it but charge extra for the service so it would be a safe bet to check around.
It’s tough today. Many factors contribute to not only taking care of your financial obligations, but deciding which ones have the most importance. It’s very unfair right now for insurance coverage to be the way it is, but with some extra elbow grease, you can find the right policy for you to save some extra money.