Car Insurance with No Credit Check Requirements

Getting car insurance without a credit check depends on where you live. In some states, it's illegal to use credit scores as a factor when determining how much you'll pay for car insurance.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 22, 2021

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Here's what you need to know...

  • Poor credit reports imply irresponsibility and failure to make payments which insurance companies view as an additional risk and sometimes a reason to refuse to insure you
  • Insurance contracts with a no credit check provision are available to allow you to buy insurance without having to worry about your credit report
  • Most companies who offer a no credit check option have higher insurance costs as a way to protect themselves if you become a high-risk company
  • Try to improve your credit score so you can find better deals on car insurance policies without any extra hassle

It may surprise you to know that not only does credit score limit your opportunities to lease a new car, but it may very well also determine your premium rate for car insurance.

If you’re looking for car insurance and no credit check requirements then enter your zip code right now and compare car insurance quotes now!

What If I Have Poor Credit?

Insurance companies analyze credit scores and reports and make risk-based judgments on your policy. It may surprise you to know that all insurance agencies retain the right to raise the price of your premiums or cancel the policy altogether if you have a poor credit history.

Poor credit could include reckless spending, civil judgments, and accounts in collection. The insurance company believes that individuals who manage money carefully in the home are also capable of driving at a safer pace than people who regularly accumulate debt.

It’s not fair to say good credit drivers are more responsible than poor credit drivers. However, statistics show that good credit drivers file fewer claims than those drivers with poor credit.

Some companies also argue that poor credit drivers tend to exaggerate claims more often than good credit insured drivers and also commit more instances of fraud.

Bear in mind that some insurance companies may use poor credit scores to deny you renewal coverage—even if you never file a claim and pay every bill on time! If your risk increases for any reason, the insurance company may not be able to afford you.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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Finding Help When You Need It

Look into buying insurance contracts with a no credit check provision.

Remember that a good credit score is about 700 while a poor credit score is 600 or less. That doesn’t leave much room in between. It’s better for the issue to be avoided, rather than to suffer the consequences of a 650 or 600 credit score.

How do you go about finding a company that sells a policy not affected by credit rating?

If you do manage to find a company that cooperates in this regard, that company will want to know your risk level before they give you a firm price.

The only proper way to issue a contract for car insurance is to objectively consider all risk factors so they can accurately predict future claims.

What these companies can offer is the option to not run a credit check and to base your premiums on other factors such as:

Final Considerations

Since a no credit check insurance company is doing you a favor and eliminating credit score from the equation, you can bet that the company does get some financial rewards out of the deal. They can raise their premiums slightly to a level less than if you applied with poor credit.

If you don’t want to pursue a company with these higher rates, then you will have to take the following steps to fix your credit rating:

  • You can request a free copy of your credit history courtesy of the Fair Credit Reporting Act.
  • You can examine the report for any mistakes and find out which debts are costing you a superior insurance policy.
  • Pay these debts off as soon as possible and watch your insurance rates likewise improve.

Obviously, there are some circumstances in which applying to a car insurance company with no credit check loan options would be ideal.

For example, if you are starting a new job and have no way to work beside your car — but no insurance company wants to cover you — then it may be a necessary debt to take on.

However, if you are in reasonably stable financial shape, then it’s a far better idea to focus on the real problem: debt and consolidation.

If you are in need of car insurance, try no credit check opportunities from local companies in your area. Be sure to compare the rate to several traditional car insurance companies before making up your mind.

Remember, just because one company can afford to lose a policy does not mean that every company in town has blacklisted you!

You can start searching for a cheaper policy right now. Enter in your ZIP code into our comparison tool car insurance quotes now!

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