Many states are now allowing auto insurers to check your personal credit history to compute the suitable car insurance rates and premiums based on your credit risk. This is on top of the usual check on your driving history, years of no claims driving experience, etc. So, if you are a poor driver and have poor credit ratings, you may not even be able to get insured with some of the major US car insurance companies. That is why many drivers want to find anonymous car insurance quotes with no credit check since they feel that they are at a disadvantage and need to pay more.
Compare Car Insurance Quotes with No Credit Checks
There are many car owners with some financial problems such as late payments, high credit card debts, etc. and these are considered as high credit risk by most major auto insurers in US. Chances are if you are subject to a credit check, you need to either pay higher rates for the same liability car coverage or even be denied any insurance coverage. If you are in a hurry to insure your car or truck, it can be difficult to find a company willing to provide bad credit car insurance quotes that are cheap.
One of the main issues car insurance companies have with drivers with poor credit is that they stop paying their monthly premiums after getting the proof of insurance. It costs a lot of overheads to procure a customer, set up accounts, go after late payments, etc. That is why some big US auto insurers chose to refuse to offer bad credit car insurance coverage to high credit risk drivers.
No Credit Check Car Insurance Quotes
However, it is known that Allstate and Progressive Car Insurance are providing no credit check car insurance quotes for pay annually policies. That means you need to make 12 months down payment for insuring your car or truck. While you may lament on the big outlay of cash, this is the best way to get auto insurance for poor credit risk drivers and there are some benefits in doing so.
Firstly, no down payment car insurance for bad credit is actually a lot more expensive. When you pay month to month for insurance cover, the costs increase by about 15%. You are subject to a credit check; hence you need to pay about 20% more for poor credit auto insurance premiums. These extra fees can be waived when you pay for annual car insurance with no credit check from Allstate or Progressive.
There are also other motor insurers that will not do a credit check. Comparing the free anonymous car insurance quotes online is the easiest way to ensure you get a good deal for automobile coverage. Avoid giving your name, social security number or driver’s license number, etc. when you request insurance pricing and rates since too many credit checks successively will have a negative effect on your ratings.
Anonymous Auto Insurance Quotes with No Credit Check
Most of the time, when you get anonymous auto insurance quotes with no credit check, be sure to ask whether that is the final price or will be adjusted after you are ready to sign up and give your personal information. this cannot be avoided because many insurers will use a cheap initial price offer to attract more inquiries. Keep that in mind so that you are able to do a fair comparison when shopping for the cheapest deal in car insurance with bad credit.
Currently, there are approximately 40 states where motor insurance carriers are allowed to use credit scores for underwriting since this does have an established link to how motorists will pay their insurance bills. If you do not want the insurers to check your credit, you may need to describe it as excellent, good, average, or bad when you ask for anonymous car insurance quotes with no SSN required. It is important to be truthful with your answers, or your actual auto insurance rates may be very different from the quotes.
By the way, it is your right to ask the insurers whether your credit score will be used as consideration for underwriting before you ask for a quote. If it is used, how will it affect your eligibility for buying auto insurance, and how do the scores affect the premiums you are paying. Many states require these companies to advise consumers specifically why some people with poor credit are charged a higher rate than advertised or rejected from coverage. Their answers may help you get a better rate if you can meet for of their requirements to qualify for car insurance with no credit check.