Cheap Car Insurance with a Bad Credit Score
Out of the different factors that go into obtaining cheap car insurance, many people find using your credit score to be the least fair. It doesn’t make sense to many people, as it seems a good driving record would be more important than a credit score. However, credit scores remain an important part of obtaining cheap car insurance, and research has shown that people with poor credit are more likely to file an insurance claim and make irregular payments.
The most obvious solution for this situation would be to raise your credit score. Your credit score can have a major impact on many parts of your life, not just in cheap car insurance. Therefore, although it will take some time to improve, in the end it is worth the effort. Ways to increase your credit score include paying off credit cards, checking for any discrepancies in your report, reducing the amount of inquiries you submit, and keeping accounts open so that a history builds up. After you’ve raised your score, recheck cheap car insurance quotes to see the savings.
Sometimes, having a good job can replace the fact that you have a bad credit score. Being a skilled worker with a high salary shows financial stability. Other factors that can reduce your premium include having a good driving record, taking defensive driving courses, and being over the age of 25. While you work on your credit score, obtaining these and other available discounts will reduce your premium in the short term. There are also varying degrees in which a company considers a credit score. Look for the companies that put less weight in credit scores.
Finally, there are cheap car insurance companies out there who cater specifically to people with bad credit histories. While these companies ensure you will not be rejected, they aren’t always the cheapest. With any company, ask your insurance agent what factors they consider in obtaining cheap car insurance. This way, you can work on any factors that may need help, and get a lower premium in the future.
While it may be frustrating to find cheap car insurance with a bad credit score, it is not impossible. Anything you can do to show an insurance agency that you are a safe investment will help you get a cheap car insurance quote. While you cannot control some factors, credit scores are one thing you can improve.