Bad Credit Blog

No matter who you ask, everyone feels they are paying too much for car insurance! With the cost of repairing newer vehicles rising every year the cost of car insurance has skyrocketed causing some people (possibly you?) to try to get under the radar and not carry insurance. If anyone suggests that to do that – remember – it’s BAD advice. Don’t do it. If you think you have problems now they will quadruple or more if you even have a little fender bender.

In California where I lived for 30+ years the state will confiscate your car if you are in an major accident without insurance! Some states require you to have car insurance before they will register your vehicle. In Arizona, where I currently live, if you are stopped they ask for proof, and more states are starting to do that. So think twice before just letting your insurance lapse.

Most people know their car insurance rates are based on their age, driving record, residence and how many miles they drive for work. But did you also know that your rates are based on your credit score? It sounds strange, I know, but before you go shopping for car insurance you might want to pull your credit and see what your score is. Then take some steps towards improving it.

If you need car insurance right now though and are trying to get the lowest rate possible we have some helpful advice for you.

Know The Minimum Car Insurance Coverage That Is Required By The State:

Most states will require some type of minimum coverage. It will vary by state so check your state’s requirements.

For instance in Alabama the minimum requirement is only $20,000 for bodily injury for one person and $40,000 for all people and $10,000 property damage liability. That’s pretty low.
So as an example, if you hit someone driving a $40,000 vehicle causing $20,000 damage to their vehicle (that’s entirely possible with today’s cars). Your insurance will pay $10,000 and guess who is going to have to pay the difference? You!

If you MUST, get the least amount of car insurance you have to, but if you can afford a little bit more (and often it’s not that much more per month) then we recommend you do it. One way to save on car insurance though is on the comprehensive and collision coverage. This is the amount of coverage on YOUR vehicle. Now, if you are driving a relatively new car you obviously need this – if you’re hit by an uninsured driver your insurance will have to foot the bill - but if your car is 10 years old or older you don’t need it.

Most cars 10 years or older are only worth $2,000 to $4,000. If you’re car is in this category then full coverage might be costing more than the insurance company will give you if your car is totaled.

Coverage Your MUST Have:

Uninsured or underinsured coverage is something you should have. There are so many people on the road today with no car insurance, if you are hit by one of them you have two choices. Pay the bills yourself and sue them in court (good luck with that), or use your uninsured motorist insurance to get your car repaired and pay your medical bills. So even if you are trying to get the most scaled down policy possible, try to budget for uninsured coverage. It’s worth the little bit extra.

How To Shop For The Best Rates: You can get your yellow pages and “let your fingers do the walking” as they say or you can go to our website and check our car insurance brokers. They specialize in two things: 1) finding car insurance for people who have bad credit and 2) finding you the best rates PERIOD! They will shop hundreds of car insurance companies for the best rates saving you lots of time, frustration and money.

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

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