Getting good car insurance without perfect credit may seem daunting, but it need not be. It really is quite easy to obtain auto insurance with less-than-perfect credit; you just have to know how to go about getting the right policy for you at rates you can afford.
Call any number of the many car insurance companies or begin the application process online and one of the very first questions is “What is your social security number?” When you are asked for your social security number before the insurance representative asks other pertinent questions does not mean that the person is starting your policy. It undoubtedly means the person wants your social security number to check your credit.
When I was searching for a new car insurance provider several years ago, I called five different insurance companies. The first person I spoke to demanded my social security number almost as soon as I said that I was considering changing my insurance company. I was naïve and assumed she wanted my social security number because she was starting my policy. Instead, the next words were “I’m sorry, ma’am, we can not insure you. We require a credit rating higher than yours.” I was shocked. I decided I would not let that happen again. Two of the next four car insurance companies asked for my social security number up front. I simply replied I was “not giving my social security number up front before you even ask my name!” I hung up, making a mental note not to ever do business with either of those companies.
I called a company that did not ask my social security number and got valuable car insurance policy information. But I still wanted to call somewhere else and not just jump into a policy with the first company that would approve me. I called another car insurance company and was very satisfied with the company, the insurance representative and the entire conversation, overall. The representative seemed much more sincere about providing me with the policy that was perfect for me and not just about getting my money. I went in to the office and saw the same man I had spoken to on the phone. After signing all the paperwork, he informed me that I had one of the lowest rates of any of their auto insurance policy holders. That was because I had no points on my record; I had not had any traffic tickets for several years.
Getting Car Insurance When You Have Special Needs Requirements
The person who has special needs when shopping for car insurance needs to shop around very carefully. There are endless numbers of car insurance companies who will provide coverage for those who need an SR-22 bond or “high risk” insurance, a young driver or other special needs. These are usually provided without checking credit, due to the very nature of the policy. But getting car insurance when you have special needs that you must abide by due to laws in your state or because of convictions such as for DUI, at-fault car wrecks, multiple traffic tickets or other reasons is going to cost more. Know that before you make any calls to inquire about car insurance. Check the rates and exactly what the policy will cover before you decide what company is best for you.
Be honest upfront; tell the insurance representative that you need the SR-22 or whatever special needs you have for your car insurance coverage. The insurance company will find out when they run their checks anyway. You do not want to be perceived as being dishonest to a company that is trying to help you with your specific needs. Make sure the coverage is for the amount and specific criteria designated by the courts or the state laws where you live. If it is not and you get stopped, you could face additional charges for non-compliance of the law, or your court sentence requirements.
Additional Tips on Getting the Best Policy
There is no need to be stressed or embarrassed when seeking car insurance, knowing that you have less-than-perfect credit. Look at ads in the phone book or on-line. Sometimes you can tell from the wording of the ad if you can potentially get a great policy at affordable rates just be reading the ads. Consider a report by Consumer Reports that indicates car insurance rates are “buffeted by a slew of variables.” Do not jump at the first company. Seek out reputable companies, even if you have special needs in auto insurance.
Do not be discouraged because you do not have perfect credit. You are not the only one who thinks it unfair that companies consider your credit rating when determining if they will serve your car insurance needs. Consumer Reports says that “Consumer advocates (including Consumer Reports) have long argued that credit-based scoring is unfair because scores are not related to accident risk. But legislative efforts in 27 states to ban or restrict the practice over the last two years have been unsuccessful.”