Acquiring car insurance coverage may be a quite difficult if you have no credit or, worse, if you have bad credit. For over a decade now, car insurance providers have been using credit scores to assess the risk levels of drivers. They claim that credit rating is a good indicator of risk. While this fact is disheartening for most car owners, it’s not impossible for a bad credit driver to get coverage. These days, many car insurance providers offer car insurance no credit check required.
Here are the steps you need to take in order to acquire car insurance no credit checks required.
- First, you need to get a copy of your credit report. You are entitled to a free report from any of the major credit companies – Experian, TransUnion and Equifax. Ensure that there are no errors in it. If you find that there’s something wrong with the information in your credit report, do not hesitate to take it up with the company that provided it. Accredited credit report companies are required by law to investigate errors and rectify it as soon as possible.
- Contact your local insurance regulatory agency for assistance in locating insurance providers that offer auto insurance no credit checks.
- Gather car insurance quotes through comparison websites such as MoneySupermarket.com, Confused.com or GoCompare.com. This will give you a chance to find out which car insurance providers are offering deals that best suit your needs.
- Lower your risk as much as you can. Start parking your car inside your garage. Install security systems to protect your car from theft. Make sure that your seatbelts, anti-lock brakes and airbags are functional. By lowering your risk, you reduce the likelihood that you’ll be taking out a claim anytime soon. As a result, your premiums get cheaper.
- Get your credit score up as much as possible. Pay your dues on time; this includes car insurance premiums, utility bills and loan payments. Once you’ve managed to repair your credit score, notify your car insurance provider at once.
- Be a good driver. Practice good driving habits. Lower your mileage. The high cost of car insurance for bad credit drivers isn’t necessarily due to the fact that they entail bigger risks; it’s because statistically, bad credit drivers tend to take out claims more often. Being a good and disciplined driver shows car insurance providers that you are less likely to take out a claim than other drivers.
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