When you are applying for auto insurance, most companies are going to run a credit check as a way to evaluate the risk of insuring an individual. It is possible to locate an insurance company that offers car insurance without a credit check. Obtaining car insurance can be a bit difficult if your driving record is less than stellar or if you have bad credit. Finding a car insurance company that will ignore the credit score to provide insurance coverage for your vehicle is possible, you just need to know where to look.
Why Car Insurance Companies Run a Credit Check
Any type of insurance is a gamble for the insurance company. They are betting on the fact that you will not have an accident, which would cost the company a significant amount of money. One of the ways that they try to lessen the risk is by looking for people that are responsible. One sign of a responsible person is a good credit score. People who pay bills when due, are less likely statistically to be a part of a car accident. This is why most insurance companies will run a credit check on people who are applying for an insurance policy. This will provide them with a scale to judge the person applying. Your credit score may or may not reflect your responsibility accurately, but that is not the point.
Obtaining a Credit Report
If you feel your credit score may be too low and will affect your chances to obtain car insurance, it is a good idea to pull your credit report in order to make sure. You have the right to one free credit report each year. You can visit annualcreditreport.com for information about getting your free report. You may have a better report than you might have thought. If so, you will have more options when you are shopping for auto insurance.
If you are trying to find an insurance company that will not run a credit check, the first thing that you are going to need to do is gather all of the required information for the insurance company. You will want to make sure your details are up to date so that you do not provide information that is not accurate. If you have been covered with a car insurance policy in the past, make sure that you have a relevant policy schedule available. Make sure that you gather your driving record details and your insurance history regarding any convictions, accidents, and claims that may have made.
Proving you are Low Risk
A credit score is only one of the things that an auto insurance company will use in order to determine how risky you are to insure. You will want to come up with other gauges that you may use to show that you are financially responsible. Is your driving record clean? Have you made all your car payments on time? Do you make all your student loan payments on time? Are you paying a mortgage that is current? Showing this information to the auto insurance company will help you show that the credit score is not a great indicator of your actual risk level.
You can use the information that you have put together to obtain quotes from different companies that sell auto insurance. There are price comparison sites that will show you a number of different insurance quotes all in one place, which makes them easy to compare. All you have to do is put in the information that is required in order to determine what an insurer will offer in terms of premiums and coverage.
Using a Broker
Hiring a broker is one way that may put you in the position of not having to go through a credit check. This will depend on how the broker works, they may be used as an intermediary in order to pass the payment for your insurance policy on to the auto insurance company.
Call your State Insurance Agency
Another option that you have if you do not want to have a credit check conducted is to call your states insurance regulatory agency to find companies that will offer car insurance policies without running a credit score.
If you are scared that a credit score is too poor and you are going to be denied car insurance, you can look for companies that will provide you with an auto insurance policy without running a credit check. While many insurance companies do want to run a credit check on all of their applicants, there are some companies that will provide you with car insurance without running a credit check first. You will be able to find an insurance policy as everyone is required to have car insurance, no matter what type of credit score that you have.