New research has suggested that UK motorists who have a poor credit score pay, on average, 20% more for car insurance than everybody else.
The good news is that if this includes you then there is something that can be done, and you can get cheap car insurance even if your credit score is really bad.
Credit and Car Insurance
How does your credit rating affect the price you pay for car insurance exactly? There are a few different reasons.
For one, an insurance company is more likely to give you an expensive quote simply because of a bad credit score.
Apparently, bad credit means that you are statistically more likely to make a car insurance claim, something which is backed up by years of data that has been collected.
Not only that, but if the car insurance company decide to offer you a monthly payment option for your premium, then if your credit score is low then you will get charged more interest than other people, which ultimately means you pay more.
That is assuming you can even get accepted for monthly payments, as many car insurance companies won’t even accept motorists with bad credit for this type of deal. Instead, they will demand all of the cash upfront, and won’t think twice about charging you 20% more than everybody else.
You Don’t Have to Accept This
There is a way you can fight back though, and it starts with taking the power away from those insurance companies who have had it their own way for such a long time, most of them believe they are untouchable.
Well, they are not, but you have to do things the right way when getting a a new car insurance quote or renewing one.
Most people simply stick with one company all of the time, even though their policy keeps getting more expensive every year. Remember, loyalty doesn’t pay…not when it comes to car insurance companies.
A Comparison Website is a Good Start
What you should do is a visit a comparison website where you can get quotes from over 100 companies, many of who are more than willing to accept customers with a bad credit score…on a monthly payment basis as well.
The best part about using these sites is that everybody is fighting to win your business, which means it puts you in control. Don’t be surprised if you get a very cheap car insurance quote, the kind you would have thought to be reasonable 10 years ago.
Just be careful of those so called “comparison websites” out there with all those fancy gimmicks and slogans. Yes they might be entertaining, but do they really offer cheap quotes, especially if you have a bad credit rating? Probably not.
Just Cheap Car Insurance Quotes…Nothing Else
What you really want is a site that gets straight to the point, without any nonsense, and that won’t confuse you.
Also, the quote you get is free of charge and comes with no obligation. You can decide it isn’t for you at anytime and you won’t get any phone calls.