There are a few components of a credit score. If you are still young you probably won’t have enough history to show. If your parents or college is paying most of the bills and you haven’t settled in one place yet you would probably not have built enough credit. Do you really need to fixate on it and blame it for the high quotes you keep getting?
Indeed, there could be many reasons why you don’t enjoy cheap premiums. Even living in a poor zip code may cause problems for you because of the high crime and accidents in that location. If you still want to look at car insurance companies who don’t check credit, let’s get on with it and see where we are at.
To start with, California, Hawaii and Massachusetts don’t allow use of credit scores for the purpose of setting rates. So, you wouldn’t have a problem if you lived in these states. Most other states allow its usage because it is proven that it is a material fact that can be indicative of risks. Probably many other things are significant as well but scores are readily available and provided by many companies.
The problem is that the auto insurers who don’t care about creditworthiness are less than 10% in most states. The names change in each state and companies aren’t necessarily forthcoming about this fact for the reason that they don’t want to end up with the clientele who have a similar risk profile. This could skew things against their favor.
However, it isn’t the major problem. The real issue is that these carriers already charge high enough premiums for various reasons that your low score becomes insignificant. The drivers that go to them for a policy have much bigger problems. That is why they can ask whatever they want in terms of price. So, you may be looking in the wrong place for the cheaper vehicle insurance quotes.
Think about mortgage companies that don’t even look at income or many other things. They can offer you a mortgage but there are many catches. To start with they want you to put down like 50% of the purchase price. Then, they are secured and you are the one risking your 50% down payment simply because they can repossess your home and sell it at half the price and they still wouldn’t lose money. They can do that by the way.
In short, be careful what you wish for with financial companies. They know something when they offer a particular deal. They have calculated their options and come up with those products. Motorists with small issues like credit score should still stick with traditional carriers who will not be as bad.
Besides, what are the risks with motorists who are currently having problems? They may perhaps be late on their premium once or twice. Then, the carriers would cancel the policies and be done with it. No harm is done. Another problem is that they may actually make small claims because they don’t have enough money to pay for them. Still, it isn’t a huge black mark that it would be hard to get decent auto insurance rates.