Direct Auto Insurance No Credit Check

Most people think the car they drive or their driving record plays the most significant part in determining auto insurance rates. While these factors play a significant role, a person’s credit rating is more important than ever. People that have deficient credit scores under 600 can be classified as high-risk motorists. This results in premiums that can be 50% or higher than those with good scores above 700. Good drivers often search for direct auto insurance no credit check to compare insurers that don’t require a background credit review.

Some Insurers Won’t Insure Poor Credit Customers

Some consumers have terrible credit. This means multiple unpaid bills, bankruptcies, and other serious financial issues. Insurance carriers are all about mitigating risk. They view these types of consumers as high risk.

People with bad credit often get into more car wrecks and get issued more tickets, but they also tend to commit more insurance fraud and inflate claims. They also tend not to pay their premiums more frequently or cancel their policies altogether more often.

This results in carriers frequently losing money and raising premiums for everyone. As a result of these and other factors, many insurers refuse to cover those with credit scores below 600.

Many people are responsible for their finances, but a business or personal event, like a divorce, can cause their score to go down. The good news is some carriers offer direct auto insurance with no credit check. They provide high-risk coverage at rates that begin at about $100 per month.

If you have bad credit and get rejected by a provider, don’t give up. Do more research into companies like The General that offer coverage to higher risk customers. Enter your zip code and compare online rates today!

Why is Direct Auto Insurance No Credit Check Favorable?

Many companies check a person’s credit because it is a useful measuring tool to determine someone’s risk. Each type of insurance: automobile, homeowners, health, and life carries inherent risks to the company underwriting the policy. The higher the score, the more responsible a person is likely to be.

Someone who takes care of their finances will probably take care of their physical health. This means they are less of a risk to insure, both for a health and life insurance policy.

Good credit scores above 700 will help you get better rates on all insurance types, not just car insurance. In this case, you wouldn’t need to get direct auto insurance no credit check.

Take Steps to Increase Your Credit Score

If your score is low, do not take it personally. Bad things happen to all of us, including uncontrollable financial events. Your insurer will not single you out; they will classify you with others, that also have low scores. You can take adequate steps to increase your credit rating. Here are just a few tips: