No Credit Check Car Insurance

You may wonder why auto insurance companies want to look at your credit history in order to determine your car insurance rate. Car insurance providers see your credit score as a way to determine how high of a risk you are to insure. Statistics show that drivers with good credit are less likely to file numerous claims and not pay their auto insurance premium on time, so auto insurance companies see them as less of a risk to insure and offer them cheaper car insurance rates. On the other hand auto insurance companies see drivers with poor credit as more of a risk, less likely to pay their auto insurance premium on time and more likely to file numerous or false insurance claims.

Not all auto insurance companies do a credit check to determine your car insurance rate. In some states, insurance providers are not allowed to use a driver’s credit history to determine insurance premiums. You just need to do a little research and compare auto insurance quotes from multiple insurance companies because every company has different policies about checking your credit to determine your insurance rate. Many car insurance companies actually advertise that they provide auto insurance with no credit check, so it is possible to find cheap car insurance even if you have bad credit. If you find an insurance company that won’t give you a quote without checking your credit, move on to the next company until you find the company and the rate that are best for you.