Long gone are the days when customers could show their impeccable driving record, void of any speeding tickets or accidents, and proof of paying their insurance premiums regularly and expect to be rewarded in return by the auto insurance provider in the form of discounted auto insurance premiums. Today, auto insurance providers do not pay as much attention to these aspects, as they do to the credit history and the fact that your spouse or partner getting the pink slip due to the downward spiraling economy. Therefore, even insurance holders with good driving records and good payment scheduled are still being nailed with policy cancellations or increased premiums just because of the credit history.
The question that is plaguing many customers in these economically trying times is ‘why are auto insurance providers keen on conducting a credit check as compared to prioritizing the other factors that show good behavior?’ In the past, the requirement for credit history came up only when customers wanted to sign up for the policy, but today, this is a requirement even to get auto insurance quotes. All the states in the United States of America have made it mandatory to have a valid insurance coverage while driving. With this being the case, people are questioning how these insurance providers can either refuse insurance coverage or increase the rates exorbitantly just because of the credit history. In fact the answer is, insurance providers are aware of the mandatory requirement, which is the reason for them to charge the rates they think are right.
Most of the auto insurance providers in the country assume that having a good credit history is proof of being a responsible driver. What they don’t realize is that this is not as simple as it looks on the surface. Just like how a person with the best credit history could be a bad driver, there are instances where a person with a poor credit history can have an impeccable driving record.
The good news for customers is that there are certain auto insurance providers who do not check the credit history of the applicant when they come looking for the right coverage of their car. Since these companies are few and far between, customers have to shop extensively to unearth these providers. Such companies offer a sigh of relief to people who are victims of bad credit history because of the unstable economy and not because they did not want to repay their dues intentionally.
