A solid credit rating also shows that you are less likely to take dangerous chances in your car and therefore be a lower risk to an insurance company.
But what are the options for those who do not have such a sterling credit rating? If you know what car insurance companies don’t use credit ratings, this can be a good place to start.
Read on to learn about credit ratings and car insurance and then be sure to enter your zip to compare free auto insurance quotes from top companies online!
Understanding Your Credit Rating
Your credit score is measured by independent organizations called credit bureaus. They take into account factors such as your payment history, how much you owe, the amount of credit available to you, and the length of time you have owed money.
A good credit score means you can be counted on to fully pay your debt and also signifies your membership among the ranks of reliable and responsible citizens.
“Good” credit ratings are represented by a score of 700+, while scores below 600 are considered “poor.”
Every US citizen is eligible for a free credit report once per year from AnnualCreditReport.com.
Use Caution with No Credit Check Car Insurance Companies
Find car insurance companies that don’t use credit ratings, but be careful in doing so!
An Internet search for “no credit check car insurance” should provide you with many options for insurance providers who do not use credit ratings as a factor in determining premiums.
A visit to the website of the insurance regulatory commission in any given state, or a call made to the commission’s toll-free number, will also provide information about no credit check car insurance providers in your state.
However, many times the no credit check car insurance rates are much higher than regular auto insurance rates.
The companies using the no credit check tag line on their marketing campaigns are targeting riskier and often more desperate audiences.
Finding a provider that will cover them at anything resembling a reasonable premium may seem like a gift.
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How to Protect Yourself and Your Credit Rating
If you are denied car insurance or given a higher premium because of your credit rating, your insurance provider must give you the contact information for the credit reporting agency that delivered your score.
Get in touch with the reporting agency to find out the details of your report.
If you request the information within 60 days of being denied insurance, you are eligible for a free copy of your report.
Once you have all the information at your disposal, you will be able to analyze the results so that you can determine what steps to take in order to improve your credit rating and thus lower your insurance premiums.
Compare No Credit Check Car Insurance Quotes Online
Compare both no credit check car insurance quotes and traditional car insurance quotes using online tools that provide a wide array of competitive rates.
Enter your zip code to start comparing car insurance quotes online today!