You may be in a poor state financially or just too young to have any meaningful trail to account to any score and you may want to buy coverage or renewal coming up. You would naturally be worried because bad credit automobile insurance can be expensive. Therefore you need to know all the options available to avoid paying over the odds. This post will address a few commonly asked questions and try to answer them as honestly as can be.
There is some misleading information on the Internet and there are people suggesting names of firms who provide no credit check vehicle insurance. There is a high chance that some of these sources may be too old and out of date. You may need to test those claims and see, rather than taking them on face value and going with it.
Car Insurance Companies Who Don’t Check Credit?
Probably everyone with this problem likes to have the names. First of all, California, Hawaii and Massachusetts don’t allow its use for premium calculation purposes. If you live in one of these states you don’t need to worry about a troubling money situation you are in because it cannot influence rates directly.
The ratio of vehicle insurers who don’t take the score into account is less than 10% but this figure is changing fast towards a lower number. These would be the best ones to check with for high-risk drivers who are not favored by traditional providers due to bad driving history, financial background or any other reasons.
Here are a few points to keep in mind while searching for no credit check car insurance.
1. Your Problem May Not Be the Poor Score
There is a 95% chance that why you get expensive quotes has nothing to do with it. In other words, you probably cannot save even if you find them. Most people who are struggling to find affordable prices have totally different problems like too many tickets, claims or no history. For example, a young driver is unlikely to have any financial trail at all. Nonetheless, they pay high premiums because of different reasons like having no experience and being young. It is unlikely that having a good score will help them much with majority of carriers. So, it may be that it isn’t what is hurting rates.
2. No Credit Check Auto Insurance Companies Aren’t Your Friends
There is hardly any traditional (well-known) names that would go anywhere near an applicant without looking at this figure. They may have subsidiaries that deal with high-risk applicants like people with DUI, too many claims or unpaid debts. Usually, they are small and their rates are much higher than traditional ones to start with. Think twice before asking for them and never accept a quote before you get a few more.
One of the main reasons for this suggestion is that those are normally more expensive than the main stream ones from the word go. So, their final price may be higher than if you were to choose one of the well-known firms. So, it is best to get a few quotes online and see which one comes up with the cheapest premium for the same coverage.
3. Don’t Eliminate the Best
Nearly all reputable names use the score as one of the key factors while calculating premiums. This means that while you are trying hard to find one that won’t care about it you may end up with a company that is not great for prices or service in any case.
4. Every Underwriter Looks at It Differently
Even though most of them use it to fine-tune quotes, each has different weighting for this data. While some are placing high importance on this input many others may not really be much concerned about it.
You should not pay too much attention to who does or doesn’t do whatever it is. Instead, you should look for one that will offer cheaper price overall.
5. Look for Car Insurance Companies who Are Good for Bad Credit
Some are rumoured not to charge too much for it even though they may take it into account while they are calculating prices. For example, according to wallethub.com GEICO is one of those more lenient ones towards such motorists with money issues. Your best bet is to look for them. However, that is exactly what you are doing when you are checking competing quotes online. If you get a few you are bound to find something affordable.
Does Bad Credit Affect Automobile Insurance Rates?
There may be four reasons why they check the status of current policyholders before offering renewal terms.
- The first one is if the policyholder missed any premium payment.
- Secondly, they look at it when you want to set up instalments.
- Thirdly, if there are considerable changes in circumstances and they like to recalculate the renewal quote.
- Fourthly, they do it every so often and you may be due for one.
So, try not to miss and pay it in full next time so as to not alert them to your deteriorating money situation. There is a chance it has not fallen enough to concern them. You should wait and see what renewal terms they will offer. They would send it about two weeks in advance. This would give plenty of time to get alternative quotes if you are not satisfied with it. If you are a good driver and had no recent claim you would have plenty others to go to and one of them would offer affordable rates.
Final Words on Getting Auto Insurance with Bad Credit
We pointed out above that nearly all the established ones DO check it. And the ones who DO NOT are usually substandard carriers that like to charge ton of money anyway. So, you may be running around in circles.
Also, you need to know that insurance credit scoring is different than FICO score. Each underwriter has own way of including this into premium calculations. They usually rate it in tiers like Great, Good, Average, Below Average and Poor. Therefore there is no need to panic because of a small dip, as it won’t probably change anything.