If you have a low credit score rating, you know that it can be difficult to get approved for a car insurance policy. No worries, we’ve got you covered. There are ways to get insured, even if your score is not good. Car insurance companies often see high-risk drivers as a liability, and premiums for those with bad credit can be expensive. In this article, we'll go over the best ways to get car insurance if you’re not confident you can get coverage because of your credit history.
How Various Credit Scores Affect Car Insurance Rates
Car insurance companies in most states base the amount they charge for insurance coverage on what your credit score is. If your credit score is low, insurance companies may view you as a higher risk, and will often charge you more for coverage. You may also have difficulty finding an insurance company that will sell you a policy.
There are a few things you can do to make getting car insurance easier. First, shop around for the best rates. There may be some insurance companies that are more willing to work with customers who don’t have a high credit score, like Acceptance Insurance. Second, try to improve your credit score. A higher score will make you a lower risk to insurers and may result in lower premiums. Finally, be honest about your credit history when shopping for coverage. Don't try to hide your credit issues, as this could lead to the cancellation of your policy.
How To Improve Your Credit Score So You Can Get Cheaper Car Insurance
If you're looking to get cheaper car insurance, one of the best things you can do is improve your credit score. A high credit score says you're a low-risk customer for insurers, which means you'll likely be offered lower rates. There are a few things you can do to improve your credit score:
First, make sure you always pay your bills on time. Late payments can harm your credit score.
You should also try to keep your credit utilization ratio low. This is the amount of credit you’re using compared to the total amount of credit available to you.
Try to keep the total amount of credit you spend at less than 30% of your available credit limit.
You can also improve your credit score by building up your credit history. Open a few different types of accounts and keep them open for a while. This will show that you're a responsible borrower.
Tips For Rebuilding Your Credit Score To Help Lower Your Auto Insurance Costs
If your credit score isn’t good, keeping your car insurance costs low can be a challenge. If you follow these tips, you'll be on your way to improving your credit score and getting cheaper car insurance:
Ask About Discounts.
Many insurers offer discounts to drivers who have good safety records or who have taken a defensive driving course. If you qualify for any of these discounts, be sure to ask about them when you are shopping for car insurance.
Consider Raising Your Deductible.
Raising your deductible can help you save money on your car insurance premiums, especially if you have a low credit score. Just be sure that you have enough money saved up to cover the deductible in case of an accident.
Keep Your Car Parked In A Safe Place.
Parking your car in a safe, well-lit area can help reduce your risk of getting your car broken into or stolen. This, in turn, can help you get lower rates on your car insurance.
Maintain A Good Driving Record.
Keeping a clean driving record is one of the best ways to keep your car insurance costs low. Make sure to always obey all traffic laws and drive safely when on the road.
Get The Best Rates With Acceptance Insurance.
If you have a poor credit score, it can be difficult to find car insurance. However, there are a few things you could do to get the best rates and find coverage. By following these steps, you should be on your way to finding affordable car insurance. If you need insurance in the meantime, our local agents can help you get the coverage you need! Contact Acceptance Insurance or get a no-hassle, free car insurance quote online today!
Common Questions Asked About Car Insurance
Does Bad Credit Affect Car Insurance?
When it comes to car insurance, a low credit score can definitely affect your rates. It’s difficult to find affordable auto insurance because most insurance companies see those with poor credit as a higher risk, since they may be more likely to file a claim. As a result, those with poor credit can often expect to pay more for car insurance.
What Is The Minimum Coverage I Need For Car Insurance With A Low Credit Score?
You will likely need to purchase more comprehensive car insurance coverage than someone with good credit. The minimum amount of coverage you need will depend on the state where you live, but typically you will need liability insurance and uninsured/underinsured motorist insurance. Contact Acceptance Insurance and let us be your guide!
Material in these articles is for general information or entertainment purposes only. Acceptance Insurance does not endorse and is not affiliated with any of the companies or apps listed in this article. Acceptance Insurance is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services, or other materials on or available through these websites or resources. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners. Price may vary based on how you buy. Not all products, discounts or payment plans are available in all states or distribution channels. All products described herein are subject to terms and conditions. Credit-based insurance score will impact your rate.