What does it mean to get “no credit check” when buying auto insurance? Basically this just means that the insurance company does NOT check or analyze the credit scores of their customers when creating risk profiles and offering policies. Unfortunately, this type of coverage is NOT common and most of the top insurers are going to check your credit. Although it may seem unfair that insurers know your credit score, it is something that nearly every company will want to know if you want to buy a policy through them. You may be able to find a few companies that provide no credit check auto insurance if you look online, but most of them aren’t going to offer high quality coverage.
Hiding Credit Scores From Car Insurance Companies
Bad Credit Scores
If you are trying to get a deal on car insurance for people with bad credit, then you probably found out (or will quickly find out) that insurers will increase or decrease your auto insurance premiums based on your credit score. If your credit score is above 700, then you are in very good shape; in this case, your credit is going to have a positive impact on your insurance costs. On the other hand, if you have a credit score below 600, you are probably trying to find a company that offers car insurance no credit check policies so that you don’t have to worry about your credit score increasing your premium costs.
A lot of people don’t like sharing their credit score with auto insurance providers because it feels like a privacy invasion. They already are collecting pretty much all of your personal information (e.g. social security number, salary, where you live, etc.) and it may feel uncomfortable to share this with them. Most people that want to get good auto insurance coverage, are going to have to overcome their privacy concerns because all major providers will collect your credit score so that they can analyze your risk. If you don’t want to share it, then find a no credit check car insurer or find alternative means of transportation (e.g. biking, riding the city bus, etc.).
Car Insurance With No Credit Check
Even if you want to get car insurance without credit check, the fact is that your options will be very limited; that is if you can even find any providers. In order to even get comprehensive quotes through certain insurers these days, your credit score will likely be collected. It can be very frustrating if you are a person that doesn’t like to share personal information with insurance companies. However, if you think about doing business from the perspective of an insurance company, it makes sense that they want to know credit score because it is a huge indicator of a person’s risk; this is why most top rated insurers will need your credit score before you get a policy.