Auto Insurance with No Credit Check
Today, auto insurance companies are using more methods to calculate the risk associated with insuring a person. One new measurement is checking the credit rating. For many people, this seems like an invasion of their privacy and just too much intrusion into their private life. You might wonder why insurers do this? The answer is quite simple.
Auto insurance companies insure drivers based on the perceived risk associated with a policy. That risk is not only determined on a person’s driving record but how well they manage their money. The more reckless someone is with their money, the more likely they are to make crazy high-risk decisions while operating a motor vehicle. While this is not true for many people, the stats just don’t lie. People with bad credit do get into more crashes than motorists that have excellent credit. This can result in your premiums shooting up or even having the insurer cancel your policy. In the past several years, insurers have placed more weight on credit scores, so it is something you need to pay attention to if you are in the market for auto insurance.
There is good news out there for those consumers who have a bad credit report
There are automobile insurers that do not use this variable. This means you can buy auto insurance with no credit check online. With direct insurers like good to go insurance, bad credit doesn’t need to be something you worry about. Get your free go to go insurance quote online and compare multiple rates in 5 minutes or less.
Why Insurers use Credit Ratings
Whether you are buying home insurance, life, and especially automobile, your credit rating is a big indicator of your financial health. It also tells companies if you pay your bills on time. Insurance providers are in the business of risk management. When you apply for auto or home ins, many statistics are used to create a risk profile. This includes age, sex, address and many other factors. One of the main reasons credit is being applied more in recent years is because there’s a correlation between excessive claim filing and low credit scores. People that are struggling financially tend to file not only more claims but claims that are fraudulent. As fraud has increased over the years, auto insurance firms have used credit scores as a way to mitigate this risk in higher premiums.
The unfortunate thing is there are many people who are honest and hardworking that have bad credit due to unfortunate events, such as a business failure or a home foreclosure. If your score is low, you can always work on it and get it higher in just a few months. Some simple steps include:
* Pay all your bills on time
* Get any incorrect items off your credit report
* Pay off your credit card balances
* Do not have too many open lines of credit
With some due diligence and patience, anyone can restore their credit rating to above average or even excellent. Having bad credit does not at all mean you’re a criminal or bad person. It is simply a tool insurers use to calculate the premium cost you will be charged for the coverage you want to buy.
How much will a Good Credit Score Lower Car Insurance Premiums?
In general, a good score is 700 and above. This will help you obtain the cheapest possible auto insurance rates if you are also a good driver over the age of 25. With scores of 700 and higher, you will be grouped into a “responsible driver” market. This will save you about 10% or more. While that might not seem like a lot, it adds up to thousands of dollars after just a few years.
But a Direct Auto Insurance Policy and Save More Money
Now that you know how to important credit scores are, it is time to get quoted online. The best rates are almost always found at sites like go to go insurance. You can apply for auto insurance with no credit check at good2go in only a few minutes and save about 40%. The quote is free and there is never any obligation to purchase a policy. Start your quote today and get the cheap automobile insurance you need.