Will bankruptcy affect my car insurance? Bankruptcy does not directly impact insurance rates, but it does affect your credit score, and since most insurance companies use your credit score to determine how much you pay for premiums. To be clear credit scores are not the only factors that insurance companies review.
“When pricing your policy, an insurer tries to predict how much risk you will present as a client. Indicators such as age, gender, location, vehicle, driving history, and credit score, go into your monthly premium. Much like a poor driving history, a bad credit profile will result in higher auto insurance rates” Zebra Website.
Will bankruptcy affect my car insurance? If you are lucky, the only factor negatively impacting your insurance rates will be your credit score, but depending on which company you use as an insurance provider, the other factors may also cost you more money each month. It’s important to do your research and find out which insurance companies are approved by the state you live in and will meet your needs most effectively. If you have a long commute to work, it may be worth it to invest in a policy that provides roadside assistance, or other convenient services just in case you run into problems on the road. If you only occasionally drive your vehicle, and usually short distances, you may consider buying car insurance that is a little simpler in what it offers you but also costs less each month.
Bankruptcy can actually improve your credit score in many cases. This in turn may actually help you get lower car insurance rates.Douglas Barrett in Life After Bankruptcy: The game plan to rebuild, restore and renew tour credit after bankruptcy
Will bankruptcy affect my car insurance? According to the same article on The Zebra, the company Root Car Insurance bases its insurance rates solely on your driving record, so if you have never received a citation, you may want to review what they have to offer. Whatever car insurance you ultimately choose, it’s important to remember that after bankruptcy, your credit score will gradually improve so you won’t be paying high insurance rates forever. Call us today to see if bankruptcy is a good fit for your situation.