Even though most auto insurance companies use credit scores in part to evaluate risk when deciding whether or not to insure someone, it is still possible to find companies that offer no credit check car insurance. Getting auto insurance can be problematic if you have a spotty driving record or if your credit is bad. Finding an insurer who is willing to ignore your credit score for car insurance coverage can be done, you just have to search in the right places.
Why Do Companies Check Your Credit?
Insurance is a risk. It's a gamble on the part of the insurance company. They're betting that you won't have an accident and cost them a lot of money. To lessen that risk, they look for responsible people. Good credit is one way that they have to judge whether or not you are responsible, as those who pay their bills on time are statistically less likely to be involved in a traffic accident. That's why insurance companies will perform a credit check on people who apply for insurance. It gives them a scale by which they can judge the applicant. Whether you think your credit score accurately reflects your level of responsibility or not is beside the point.
Checking Your Credit Score
Even if you think that your credit score is low enough that it would affect your ability to get auto insurance, it doesn't hurt to obtain a copy of your credit report to verify that assumption. You are entitled by law to receive a copy of your credit report at least once a year. Just go to Annualcreditreport.com for more information. Who knows, you may just have a better credit report than you thought you did - which will give you more options when shopping for car insurance.
Gathering Your Information
The first step to finding no credit check car insurance is to gather together all of the information that you will need to give the car insurance company. Make sure that all your details are current so you do not inadvertently provide incorrect information. If you have previously been covered by a car insurance, have copies of the relevant policy schedules in hand if you have retained them. Similarly, gather details of your driving and insurance history in terms any accidents, convictions and claims that you have made.
Other Ways to Prove that You Are a Low Risk
Your credit score is just one of the factors that car insurance companies use to determine the risk that you pose. Try to think of other indicators that you can use to show your financial responsibility. Do you have a spotless driving record? Have you kept up with your car payments? Mortgage payments? Student loans? Presenting that information to the car insurance company can help you make your car that your credit score is a poor indicate of your risk level.
There are several places where you can use all the information you've compiled in order to obtain quotes to enable you to buy motor insurance. Price comparison websites can be used to find a large number of car insurance quotes in one place to make them easier to compare. Input the required information to determine what insurers would be prepared to offer you in terms of coverage and premiums. You will then be able to use a link directly to the insurer's website. Be aware that not every car insurance company makes use of these types of comparison websites, so check direct websites also, as you will still be able to obtain an online quote. Some sites offer the service of locating an insurer that does not check credit while others will take you directly to the companies you seek. You will be able to receive a free quote online which will likely be followed up by a phone call to confirm details.
Using a Broker
Engaging the service of a broker to buy car insurance may be able to put you in a position of not needing a credit check. Depending on the way in which the broker works, you may be able to use them as an intermediary for passing payment for the policy to the insurance company.
Call the State Insurance Agency
You can also make a call to the insurance regulatory agency in your state to locate companies that offer auto insurance without checking credit scores.
If you fear your credit score is poor enough to deny you auto insurance, look into no credit check auto insurance. It is available to you if you are in need, for every driver is required to hold insurance no matter what your credit score.