Car insurance? Do they check your credit rating?

Question

I have just phoned to change my insurance over to another car, and was told twice that it was declined - firstly, he said due to the group of insurance, and secondly, I was told that the operator had a system problem.

I am a bit concerned as I know my credit rating is bad at the moment, but I am trying to better it, and I don't know if this is why my insurance was declined? I thought that they had to tell you if they carry out a credit search, but nothing was mentioned and I don't particularly want it going against me if it was searched twice. I have paid my insurance for the year, and was going to pay any extra instantly, so there would be no need for a credit search as far as I can see.

Does anyone have any more information on whether they credit search you or not for this?

Answer 1

One of my best friends works for a HUGE insurance company. That's why they ask for your SS number. Insurance is based on 'risk", and a poor credit score shows signs of irresponsibility to the insurance company. Which equates into risk.

Answer 2

no they dont check it, it all depends on ur age. depends how old u are & wot kinda car ur tryin 2 insure

Answer 3

The answer depends where you live.   I don't feel its fair to charge insurance based on your credit.   In California insurance companies do not look at your credit.

Answer 4

some companies will use your credit rating in setting your rate.

if this is the case they will present you with a fair credit reporting disclosure, or you can ask.

individuals with poor credit are often deemed to be of higher insurance risk, therefore they are charged a higher rate.

check with a big company first, one you have seen ads for. the little guys are notorious for seeming to offer a bargain when truth is they are nearly double

Answer 5

If you are paying your premiums over a period of time and not all at once, they certainly will check your credit. Otherwise, they may or may not as poor credit usually equates with irresponsible behavior. While this may not apply in your case, the majority of bad drivers have bad credit too and this is one way of discriminating between those likly to be bad from the good that is still allowed by law.

Answer 6

No they dont credit search you for this.

It seems to me that the vehicle you are changing to is unacceptable to that particular insurer.

In otherwords all insurers have criteria that you have to meet for you to be offered a quote. If you change the car to a particular model or spec that is out of their criteria then they wont quote for you. This means that you will have to cancel this policy and serch for a new one elsewhere.

Answer 7

My suggestion is trying to get as much as information as you could before making any decision,here is a good resourece.http://carinsurance.expertsupport.info/a...

Answer 8

Sounds like a cr*p insurance company. Try the Co-op. Credit check would only apply if you asked for deferred terms.