Bad Credit Car Insurance – How to Get the Best Rate

Having bad credit does not make you a bad driver, but it is going to increase your auto insurance prices. Here’s the way to get a affordable rate on bad credit car insurance.


Bad Credit Auto Insurance


As strange as it might sound, your credit score directly affects your car insurance score with some companies. Car insurance companies have figured out that people with poor credit file 40 percent more claims than individuals with good credit.


For those who have lousy credit your insurance may cost you 20% to 50% more in insurance premiums than somebody with good credit.

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The fantastic news isn’t all insurance companies use your credit score as a factor in determining your insurance rating, and some states won’t allow insurance companies to use it. So in the event you’ve been tagged as a poor credit risk, or suspect you may be, you need to shop around for auto insurance with other companies.


There are sites where you can get car insurance rates from several A-rated companies and get advice from insurance professionals, absolutely at no cost. All you do is complete a simple questionnaire about the kind of car that you own and the sort of insurance you need, wait for your quotes, then pick the best one. (See link below)

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Lowering Your Auto Insurance Rate


Besides comparison shopping, here are some other ways to lower your insurance rate:


Raise your deductible – Raising your deductible can save you hundreds of dollars a year on your insurance premium. After a while the money you save on your insurance premium will more than compensate for your deductible.


Drop your collision and comprehensive coverage – If you drive an older car – especially if your vehicle is worth less than the total of your insurance premium and your deductible – consider dropping your collision and comprehensive coverage as repairs may cost more than your car is worth.

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Consolidate your insurance policies – Purchasing your possessions insurance (or renters insurance) and automobile insurance through the same company can get you a 5% to 15% discount on your premium.


Receive all the discounts you can – Insurance businesses offer discounts on their policies for a variety of reasons. Ask your agent about all the discounts you are qualified for and take advantage of them.

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