Having bad credit doesn’t make you a bad driver, but it will raise your auto insurance rates. Here’s how to get a cheap rate on bad credit auto insurance.
Bad Credit Auto Insurance
As strange as it may sound, your credit rating directly affects your auto insurance rating with some companies. Auto insurance companies have figured out that people with bad credit file 40% more claims than people with good credit.
If you have bad credit your insurance could cost you 20% to 50% more in insurance premiums than someone with good credit.
The good news is not all insurance companies use your credit rating as a factor in determining your insurance rating, and some states won’t allow insurance companies to use it. So if you’ve been labeled as a bad credit risk, or suspect you may be, you should shop around for auto insurance with other companies.
There are websites where you can get auto insurance rates from a number of A-rated companies, and also get advice from insurance professionals, absoluelty free of charge. All you do is fill out a simple questionnaire about the type of car you own and the type of insurance you want, wait for your quotes, then choose the best one. (See link below.)
