People never imagined they would see the words “bad credit auto insurance” together. You already know there are many factors that can affect the price of your car insurance. Credit is one of those factors that you probably didn’t know about!
Insurance companies don’t want to pay claims. They calculate the risk associated and determine the premium you pay. Insurance companies consider your “risk potential” when calculating your credit score.
Here are the main risk factors car insurance companies consider when determining your rate.
Statistics show that drivers younger than 25 years old are more likely to be in an accident than drivers older. They also have the lowest credit score and are more likely to be in an accident than those with a better credit rating. These people can save the most money by using a broker for bad credit auto insurance instead of going to larger companies. In auto insurance, 25 is a significant turning point for most people (especially men). You should notice a decrease in your rates at this age, as most insurance companies will consider you to be a “responsible adult”.
The most secure drivers are those between 50 and 65 years old.
Gender
Statistics show that women are statistically safer drivers than men. Because they are more likely be transporting children, this is why they have been statistically safer drivers. They are also less likely to become “daredevils” while driving. The number of women in accidents with cars is increasing as more women commute to work, rather than being a “stay at home” mom.
Marital Status
A married couple will pay less than one person with a similar driving record. They believe being married makes it safer to drive. Although I’m not sure if it’s true, they believe that this belief is valid. . .
These factors can’t be changed but you can control some aspects that will affect your rate. These decisions may help you save money on your insurance.
Rating Credit
Insurance companies will often charge people with poor credit histories a higher premium. This is why a broker who specializes in bad credit auto loans is better than big insurance companies. The big agencies will continue to ding you until your credit improves.
Monitor your credit reports to improve your credit score and obtain better rates on insurance. Higher credit scores will help you save money on your insurance premiums. Any inaccurate or outdated information on your credit report can be challenged and removed legally. This will improve your credit score. A credit attorney can be hired to assist you for a small monthly fee and can quickly clean up your credit.
Geography
It matters where you live. People who live in areas that have little traffic will spend less insurance than those who live in densely populated areas. This is because there are more accidents in areas with lots of traffic. There may also be a higher incidence of vehicle thefts in certain neighborhoods, which could lead to a higher premium.
Accidents and DWI
A DWI, reckless driving or accident ticket (instead of a general speeding ticket), will increase your risk for accidents and result in a higher premium. Some insurance companies may penalize you up to five years after the incident. These actions can also affect your credit score. This will be added to your credit report if you have had a court judgment or fine placed against you. This can affect your credit score. You may also have high insurance rates if you are paying off a judgment or fine. We can help you lower your rates while you pay the fine.
Type of vehicle
Insure a cheap car and you will pay less than an SUV. It will be cheaper to replace or repair a cheap car than an expensive one. Your vehicle’s replacement value is an important part of your insurance premium. You should think twice about buying a 2500 vs. an 1500, or a full-sized SUV vs. mid-size SUV.
Tickets
An insurance company will consider a clean driving record and no tickets as proof that you are more than the average. Insurance companies offer rewards for driving without tickets or accident-free driving for a certain period.
Occupation
Your job is rated by insurance companies. A salesperson who drives on the freeways daily is more likely to be at risk than a banker who sits at a desk all day.
Education
Higher education can result in lower premiums. A student discount is possible by simply being in college, as long as your grades are good enough.
Driving distance from work (less than 10 miles one-way) will often earn you a higher rate
Mileage driven annually
Are you using your vehicle for business purposes?
How much you have to pay for auto insurance.
Theft protection devices like Lo-Jack (often results in discounts)
Discounts for multiple cars and drivers
How can I make sure I have the lowest premium if I have bad credit?
Compare prices to find the best deal. It’s worth shopping around for bad credit auto insurance. A broker will usually be able to find you the best rate, as they consider all the factors and match you with a company that is best for you. There are many insurance companies available, and you don’t need to stick with the biggest.
All you need is one stop. You can find a list on our website of auto insurance brokers who specialize in helping credit-challenged people. Get multiple quotes and choose the best price before you make your purchase. You can get coverage online or by phone right away. This is by far the easiest method to buy car insurance.
