Bad Credit Auto Insurance - How to get the best rate

Having bad credit makes you a bad driver, but will increase the rates of auto insurance. Here's how to get a cheap rate on auto insurance bad credit.

Bad Credit Auto Insurance

Strange as it may seem, your credit rating directly affects your rating auto insurance with some companies. Auto insurance companies have realized that people with bad credit file 40% more claims than people with good credit.

If you have bad credit your insurance could cost 20% to 50% more in insurance premiums than someone with good credit.

The good news is not all insurance companies use the ratings as a factor in determining the level of insurance, and some states do not allow insurance companies to use it. So if you have been labeled a bad credit risk, or suspected, you should shop around for car insurance with other companies.

There are sites where you can get car insurance rates from a number of A-rated companies, but also get advice from insurance professionals, absoluelty free. All you do is fill out a simple questionnaire on the type of car you have and the type of insurance you want, wait for your quotes, then choose the best. (See link below.)

Reduce your car insurance rate

In addition to comparison shopping, here are some other ways to lower your insurance rate:

Raise your deductible - Raising your deductible can save you hundreds of dollars a year on insurance premiums. After a while, 'the money you save on insurance premiums will more than make up for the deductible.

Drop your collision and comprehensive coverage - If you drive an older car - especially if the car is worth less than the total of your insurance premium plus the deductible - consider dropping your collision and comprehensive coverage can cost as repairs The more your car is worth.

Consolidate your insurance - Purchasing your insurance homeowners (or renters insurance) and auto insurance through the company itself can get a 5% to 15% discount on premium.

Get all the discounts you can - Insurance companies offer discounts on their policies for all types of reasons. Ask your agent about any discounts you're eligible and take advantage of them....