Does No Credit Check Auto Insurance Really Exist?
The answer to that question is yes they do, and the follow up question should be what is the difference between those that do check ones credit before they will sell a policy to a customer? There is a reason that this service is offered by insurance companies, and that is not everyone has perfect credit, and more and more people have negative items on their credit report or FICO score because of the economic conditions that everyone is experiencing.
There are some guidelines that insurance companies have to follow and these laws that they have to abide by differ from state to state, and in some states it is mandatory that a social security be presented when a policy is being sold and for the states where it is not providing the credit report might be an option depending on which company one is dealing with.
Why do insurance companies check the credit report for driver is what most people ask when dealing with such companies? The credit report is not the sole determining factor whether they will sell a policy to someone with bad credit; it is one of the many tools that more and more businesses are using to evaluate the overall picture of the person that is applying for the services of said businesses and insurance companies happen to be one of them.
When an insurance company offers a service that it deems is a liability to them whether it is factual or not they will charge the customer a premium. This is the case for those carriers that offer no credit check auto insurance, no matter how good someone’s driving record is and how ideal their zip code might be expect to pay more if there are negative items on the credit report.
It should be noted that there are companies that claim no credit report insurance and that will be the case when a quote is being requested over the phone or online, and if what you want is a no credit check insurance you have to make sure it applies to buying the policy.
This is general information about one of the options available to people that are having difficulty in getting insurance if their credit report is not ideal, and offering this product is of great benefit for those drivers. Although using credit reports to evaluate a person is more prevalent now days companies like those that offer insurance services are realizing that there is huge segment of the population that does not meet the ideal FICO score number.
