Not so long ago we had the privilege of being able to get a no credit check auto insurance policy if we had a good driving record, paid insurance on time, had good credit history etc. However, that does not seem to be the case anymore, as insurance providers don’t really care if you have kept up your payment schedule nor have a good credit history etc. Today, even if you or your spouse end up losing your job due to the economic downturn, the auto insurance companies can still nail you with hiked premiums or worse they can even cancel your policy.
Now, no one seems to understand the connection between auto insurance and credit history. In today’s scenario, no one knows why the auto insurance companies are still carrying out credit checks. This is a question that seems to be on everybody’s mind these days because this practice is still followed in the auto insurance industry.
Auto insurance is mandatory in all the states in the US, and that is a well-known fact. Then, how can auto insurance companies charge such exorbitant fees or even deny extending coverage to people. The answer to this question is quite simple. Since the insurance companies are well aware of the fact that auto insurance is mandatory, and the minimum coverage is required, they know that they can get away with a whole lot of things.
However, fortunately we still have companies that don’t run credit checks prior to issuing an insurance policy. It is important to understand that it is quite difficult to trace find such companies, but it is certainly not impossible as they are very much around. The no credit check insurance policies are a blessing in disguise for most of us, especially for all those who are going through a rough patch in their lives due to loss of job, or because something may have gone wrong within the last few years.
It is really difficult to find such companies these days, due to the way these insurance providers have started to think. If you think that credit and risk are directly related, then you must think again. The whole thing is not as straightforward as this. Insurance providers feel that those with better credit are far more responsible and hence make better drivers than those who are permanently in bad credit. Insurance providers don’t take individual situations, but they rather go by the trends of the whole group.
