Getting car insurance with a credit score that a hobo would be ashamed of is tricky. So when I went to purchase a car after my only mode of transportation drove its last mile, I was nervous, to say the least. But found that locally owned is the way to go for those with less than stellar credit.
Because of my credit issues, I had always paid high premiums and was required to give the insurance company access to my bank account after paying a hefty “deposit.” And after all that, liability insurance was all I could afford. But making payments on a new car would require me to have full coverage. I felt trapped because transportation was a necessity.
So I visited a used car lot that wouldn’t care too much about my abysmal credit. I kicked tires. I test drove. I carfax-ed. I found a winner. And I sat down with the dealer and hoped for the best. The helpful salesman recommended an insurance company with which they often worked. Sensing my credit concern, he explained that a credit check was not needed.
I was skeptical. I knew that no credit check meant more moolah. But I was shocked when the salesman quoted a price that was less than I had paid for liability with my former company.
How could this be? I wondered if their initial rate would increase? Would they go out of business the minute I filed a claim?
I did some research on Yelp.com. I found out that they were a local insurance company that had cut corners on their brick and mortar and online presence in order to offer good rates. Advertising wasn’t cost effective for them, so they made deals with all the local used car lots in order to get business.
It was genius. They didn’t have a big, fancy presence that would require huge premiums. The company kept it small and local so they could work with people who needed fair and affordable coverage.
I have since learned that most small companies can work with you if you have bad credit or no credit. Big companies don’t have as much latitude to offer better rates to the credit poor person. If you are worried about your credit score affecting your rate, you are better off looking small and locally. Think K.I.S.S. Keep it small, Silly!