The act of insuring drivers presents a risk for auto insurance companies as they strive to provide the appropriate rates. One of the most common risk assessments made by insurance companies is the credit score of the driver. A low score can affect the rates you pay in two different ways, the ability to pay on time and the statistics which show that those with lower credit scores are actually at greater risk to be in accidents or accumulate traffic violations.
However, you can find car insurance with no credit check which can save you money when paying for coverage month by month.
This is a coverage that does not take into account your credit score. While there may be certain insurance companies that will never take into account your credit score in the first place. This particular feature is usually for those who have demonstrated that their credit score is not a factor when it comes to their driving or their ability to make payments on their insurance.
So, while many insurance companies offer auto insurance without having to conduct a credit check, for the most part, it is only after you have established other means of proving you are less of a risk behind the wheel.
There are many ways you can obtain auto insurance without having to undergo a credit check. The easiest way is to pay your insurance in full up front. By doing that, you will not be subject to a credit check as you are not paying monthly. However, there are other methods you can use as well.
– Clean Driving Record
– Paying Bills On Time
A clean driving record over a substantial period will help mitigate the importance of your credit score. This is because you have proven to be a safe driver and that will carry a far greater factor than your credit history. Also, if your poor credit score is due to events that are not involved with paying your insurance on time, then it can be mitigated as well.
Another means of obtaining no credit check auto insurance is by using the services of high-risk providers who do not check credit history. Keep in mind that you will probably pay more when using this type of provider, but it may not be as much when compared to a standard insurance firm. While it is rare that a bad credit score prevents an insurance company from issuing a policy, they may subject you to conditions that cannot be met.
Keep in mind that no-credit-check insurance companies will still offer higher premiums and fees because of the additional risk. So, if you have a poor credit score, it pays to check out your particular situation with other insurance companies first by getting a free estimate or talking to the insurance agent. You may be surprised to find good, affordable rates because other circumstances may help your risk factors with insurance companies.