Most insurance companies across almost all the states can use credit scores to determine the insurance costs as well as to make the decision of whether to issue insurance policy to a customer or not. Therefore, it is likely that some insurance companies may deny you bad credit car insurance.
While insurance companies will check credit scores at the time of selling an insurance policy, it is possible for you to obtain quotes from multiple insurers without sharing your credit details. Therefore, technically, car insurance no credit check is not possible. However, many drivers still get confused between seeking quotes without sharing credit details and auto insurance with no credit check.
Many customers looking for cheap insurance options consider seeking cheap car insurance no credit check quotes. However, they are not comfortable sharing their social security numbers, driver’s license, or credit details that leads to an inquiry on their credit. As such, many insurers are willing to provide quotes without asking for credit details. Such quotes from multiple providers allow you to get an unbiased view of the costs you will likely pay.
However, credit score is an important factor most insurance companies consider when determining insurance costs. Therefore, if you have poor credit, the actual costs that you pay will be higher than the quotes you were provided with. Often, insurance companies providing car insurance no credit check quotes ask prospective buyers to define their credit situation as excellent, fair, or poor. They also inquire about the tickets and accidents, if any, you have been involved in. Providing accurate answers will help you get realistic quotes so that you are not surprised to see higher costs later.
On your part, you must ask the insurance company if your credit score will be used as a factor to determine the premium. If yes, how it will be used and what will be the likely effects on premiums and eligibility for a given insurance policy. The answers you get will provide you with the clarity on why you are required to pay higher premium or are denied insurance cover.
Remember, credit is one of the many factors that determine your eligibility and insurance costs. Insurance companies in many states cannot increase insurance costs or deny issuance/renewal of the policy solely on the basis of your credit score. The other factors include age, gender, location, marital status, make and model of the car, among others.