Get Auto Insurance Coverage Despite A Poor Credit Score
Insurance companies use multiple factors to evaluate each driver's risk standing. Your risk standing determines whether an insurance company can sell you coverage, as well as your rates. Your credit score is one of these factors, which means a poor credit rating is bad for your auto insurance quest.
Use the following tips to minimize the effect of your low credit rating on your quest for auto insurance coverage.
Deal With Other Factors
A low credit score is not the only reason you might struggle to get coverage. Other reasons include:
- Multiple moving violations
- Risky car ownership
- No insurance history
The more of the issues you have, the more you will struggle with buying car insurance. Deal with the other issues to improve your chances if you can't improve your credit rating. For example, you can ask a parent or guardian to include you in their policy. That way, you can benefit from the driver's insurance standing.
Shop Around
Shop around with as many insurers as possible. Shopping around can help because insurance companies place different weights on low credit scores. You may be lucky to find a company that emphasizes other risk factors other than credit rating.
Shopping around is easy with an insurance agent or online resources. Just ensure you give the agent relevant and accurate information to help with the search.
Get No-Credit-Check Insurance
The insurance industry understands that even people with low credit scores need car insurance. Thus, some insurance companies have created insurance packages for this demographic. The no-credit-check coverage (as many people call it) might require more investment than a traditional coverage. However, expensive coverage is better than no coverage.
Bundle Your Policies
Another option is to purchase all your insurance policies from the same carrier. Many insurance companies look favorable to those who give them additional business by purchasing multiple policies and will give you car insurance in addition to home and life insurance.
Work With an Agent
Lastly, work with an agent to boost your odds of getting coverage. Working with an agent helps because:
- They know which companies deal with low-credit clients
- They know the discounts you can use to lower your rates
- They know how you can lower your risk despite your low credit scores
Besides, you don't lose anything by working with an agent since you don't pay them – the insurance company does. Hopefully, the tips above will help you get the coverage you need. Don't forget to correct any errors on your credit report that might interfere with your score.
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