How To Get Car Insurance
With Bad Credit!

Car Insurance With Bad Credit

You can get car insurance with bad credit, but you are most likely going to have to pay more than you would have if you had a good credit score.

Auto insurance companies have learned over the years that people who have good credit ratings are less likely to file car insurance claims.

Apparently, the statistics prove this.  Who knew?

Because of this knowledge, the insurer uses credit scores as one of the determining factors when calculating the risk of having to pay out on a claim.

The higher the risk of the customer, the higher the premiums the insurance company will charge them. 

Obviously, that simply means that you should always try to guard your credit rating.  

Difficult times can happen to all of us without warning.  Still, if at all possible, always pay your credit card on time - even if it is just the minimum payment.

If circumstances get so bad that you can't even do that, call your credit card company (or whatever company whose bill you are struggling to pay) and ask them to have a little mercy and extend your payment due date a bit.

You may be surprised to discover that they are quite willing to do this for you.  It promotes customer loyalty.

Let me give you an example...

I remember one time several years ago when I had a fairly large balance on my credit card (which I always paid off every month).  The bill came at a time when my darling mother was terminally ill and I was helping to care for her. 

I don't know exactly how it happened, but somehow I simply failed to make my payment - at all!  I didn't even realize it until the following month when my next statement came with the interest and late payment fee attached. 

I was horrified, of course, and called the company, practically in tears.  I explained the situation to the customer service rep and asked if there was anything they could do to help me out.  There was!

They kindly waved the fee and the interest and I received no black mark on my credit score as a result.  (I immediately popped a check in the mail to pay off my bill, you can be certain of that!)

All that to say, do whatever you can to keep a good credit rating.  If it's too late for you at the moment and the deed has been done, you're going to have to deal with the prospect of getting car insurance with bad credit.

If you're not sure what your credit rating is like at the moment, you can find out!

Get A Free Credit Report

Every year you are entitled one free credit report. Of course, you can get them more often, but then you'd have to pay. :-)

Here is a list of places you can go to in order to obtain a copy of your credit report and credit score:

  • Equifax - they'll give you a report from the 3 major credit services
  • Experian
  • TransUnion

If you believe there is an error in your report, speak to someone from that agency and try to have it fixed.

Each state only allows insurance companies to penalize you a certain amount for a bad credit score. The insurance company will then use additional information like your driving history and record and all the usual personal details when totaling up an insurance score.

So, if everything else is in your favor, you should still get a fairly decent price on car insurance with bad credit.  Do get even more savings, take the trouble to view all the available car insurance discounts to see where you can get additional savings.

Auto Insurance Quotes Bad Credit

There are things you can do to help your credit score so that you don't have to worry so much about getting quotes for car insurance with bad credit. Here are a few:

  1. Establish a Credit History. Don't go and apply for a bunch of credit cards at once. That looks bad, but you can gradually start working on building up a stable credit history for yourself by purchasing something on credit and paying it off quickly.

  2. Pay Your Bills On Time. Late payments and missed payments are faithfully recorded and really hurt your credit rating. If for some reason you are unable to make a scheduled payment, call your creditor and ask if you can get an extension or work something out. They appreciate that and will usually work with you.

  3. Cancel Unused Credit Accounts. If you have several credit cards and aren't using them, close the accounts. Although you want some available credit, you don't want way too much. Be sure to ask for the cancellation in writing. A lot of these companies will leave your account open even after you've "closed" them. This does not bode well for your credit score.

  4. Keep Low Balances. Try not to max out your credit cards. In fact, it looks especially good for you if you can pay off your balances each month.

If you can work on improving your credit rating, you will find that the next time your policy is up for renewal you can get a better quote.

Don't worry! Getting car insurance with bad credit isn't the end of the world. It's just a temporary setback. You can fix this - make the effort.

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