High Risk Auto Insurance Quote: Rates to Expect with Bad or No Credit

If you have poor credit or a bad driving record and are looking for car insurance, you will most likely be receiving a high risk auto insurance quote. Unfortunately many auto insurance companies take not only your driving record but also your credit history into account when assembling your quote. Here's what to expect when you have bad or no credit. 

The Increase

No credit auto insurance can be up to 50% more than a policy for a driver with good credit. Car insurance companies use the credit score because studies have shown that people with bad credit file more insurance claims. Some companies may even refuse to cover those with bad credit but more than likely they will extend a high risk auto insurance quote rather than turn a potential customer away. 

Consider a High Deductible

There are a few options for people with bad credit or no credit for auto insurance. The first is to agree to a higher deductible. This will mean that your premiums, or regular payments, are not high, but that the amount that you are responsible for out of pocket is higher than normal. 

Choose Minimum Coverage

Another option for those drivers with a bad driving record is to go only for minimum coverage. That will most likely mean only purchasing liability coverage. You may be able to forego collision and other policies which drive the price of your policy up, just decide beforehand if this minimal coverage is for you. 

Low Risk Cars

Also, the car you drive could counteract your bad credit and you might be able to get a better quote depending on your vehicle. Cars are rated for risk on a number system and if you choose a low risk car, you won't pay as much for auto insurance. 

Compare Quotes

The trick to getting a good high risk auto insurance quote is to shop around. Not every company uses credit scores to determine prices, some states don't allow the use of credit scores and some will ask your permission before accessing the information (though refusing could work against you). Just remember that a bad driving record doesn't mean that you cannot get auto insurance.