Reduce Car Insurance
Rates even with a Bad Credit Record
The majority of insurance companies in the UK consider an
applicantís credit report when giving car insurance quotes. Drivers
with a not-so-impressive credit report often get denied insurance
cover on account of their bad credit payment habits. Times are hard
for everyone and among the worst hit industries is the insurance
industry. A number of them have done away with the good credit
report requirement in a bid to attract more customers. There are
those with affordable rates and there are those that charge you a
lot, more like a punishment for your poor credit report.
Unfortunately, we all fall into the bad credit books once in a
while. There are steps you can take if you are in this situation to
ensure that you do not miss out on insurance, which is a risk on its
First, get a current copy of
your credit report. Go through it carefully, checking for errors.
Errors in credit reports are as old as the system itself. They can
be due to computer errors or wrong human input. If you notice an
error, get an accredited credit report company to check its origin
and rectify it. The company that gave you the credit report can do
this for you. In good time, the error will be sorted out and you
will be in good books once again.
If you are not lucky enough to find errors, you will have to find
yourself a no credit report car insurance provider. These companies
are there. A search on the internet will unearth them.
Alternatively, you can consult an insurance broker or the insurance
regulatory agency for a list of top insurance companies providing no
credit check insurance. Most of them will have more or less the same
range of rates so you wonít have a hard time when choosing. Still,
it helps to compare quotes as inevitably; there will be one with
slightly lower rates than all others. Thatís the company to go for.
A word of caution when choosing a provider here: ensure that the
company is trustworthy. It is bad enough to have a bad credit report
clinging on you; you do not need a company that goes under when you
get into an accident.
Once you are approved for insurance cover, aim to increase your
credit score as quickly as possible. This will mean making timely
payments on bills, loan payments and insurance premiums. Thankfully,
bad credit is only a short term thing so you should get over it in a
short time. Immediately your credit is repaired, let your insurance
provider know so they can adjust your rates accordingly.
Other things you can do in the meantime are driving carefully and
keeping your risk as low as possible. You cannot afford to attract
points or get into an accident at this time. Similarly, filing a
claim is a bad idea. If remaining incident free means driving less,
so be it. Ensure that your car is ever parked in a secure location,
if possible in a lock-up garage.
Follow these points and it will only be a matter of time before you
begin to enjoy regular rates, discounts and all.