No Credit Check Car Insurance

For many people, bad credit is one of the major challenges of getting affordable car insurance.  It can seem a bit surprising that most car insurance companies run credit reports as part of their application process; however, this has become a standard practice in the insurance industry. In fact, locating no credit check car insurance can be a cumbersome task.

Why do most insurance companies run credit checks? They have determined that a person's likelihood of having an accident is tied to their credit worthiness. Those with poor credit are seen by these insurance companies as “careless”, and thus, more likely to cause accidents. Whether this is true or not is rather difficult to prove; however, as long as insurance companies continue to believe this, getting cheap auto insurance will remain difficult for the credit challenged.

Fortunately, there are a few companies that do offer no credit check insurance. The easiest way to find insurance without having to consent to a credit check is to look for “high risk” auto insurance companies in your area. A look through the Yellow Pages, or a simple Google search, will help you find high risk insurance companies that serve residents in your state. Several of these companies have websites where you can obtain quotes, and even start a policy, without ever having to speak with an insurance agent. In some cases, you can even print out proof of insurance coverage, in case you need it right away.

The downside of using a high risk auto insurance company to obtain no credit check car insurance is that the premiums are usually higher than for “standard” companies that run credit checks. You may be able to obtain a discount, though, if you maintain your insurance for an entire policy period - usually six months - without having an accident.

While no credit check car insurance can be more expensive than standard auto insurance, it is far less expensive than the repairs and medical bills you would otherwise have to pay for if you caused an accident.