No Credit Check Auto Insurance
Is your credit history less than spectacular? Well, don’t be ashamed. Many people look for no credit check auto insurance when it comes to insuring a new car.
Interestingly, most people aren’t even aware that insurance companies check credit reports prior to issuing a monthly rate. Still, this is just another fact of life that tends to go unnoticed. Of course, if you are looking for no credit check auto insurance, you probably already know that your credit history will impact your insurance rates. Before we talk about companies that might not use your credit rating against you, let’s talk about why insurance companies have started to use credit reports prior to issuing clients any kind of rate.
Insurance companies used to check three main things: your driving record, age, and sex. Today, however, companies have begun using all kinds of methods that will help them determine whether or not you are a good risk. Due to various bits of research and some statistics, insurance companies now believe that those with a poor credit rating are far more likely to commit fraud, file numerous claims, and exaggerate those claims that you do file. These companies look for scores that are above 700, while scores below 600 are considered to be “at risk.” Now, is this method of prescribing insurance fair? Well, there are two sides to that coin, but neither side will be discussed here. Instead, let’s talk about companies that won’t hold your bad credit against you.
Two companies within the United States tend to rely upon things other than your credit score. These companies are Allstate and Progressive. Now, Progressive will use your credit score to determine your payments if you pay in monthly installments. If you pay for your insurance plan up front (usually cheaper), you don’t need to worry about your credit report. These two are the best known companies out there for no credit check auto insurance, but that doesn’t mean that other companies don’t exist. In order to find out whether or not a company checks your credit report, you’ll have to do some detective work.
Start by calling all the companies in your area and asking for a quote. You’ll have to provide the make and model of your car, along with the area that you live in, and some other personal information. Then, take a few hours to view various internet forums. Numerous consumers often post ideas regarding this topic within forums. Also, you can use a handy insurance broker website to compare many different insurance company rates. These website are very useful when it comes to a side-by-side comparison. Finally, decide upon the lesser evil.
No credit check auto insurance does exist, though you may have to do a lot of homework to find the best company. Gone are the days when insurance companies relied upon things such as your driving record. Instead, statistics and research have lumped all drivers into a few different categories…regardless of whether or not one driver is anything like another.