Yes, you can still get car insurance with bad credit in Illinois, though it will likely be more expensive. Auto insurers often use your credit score to set rates, as studies show drivers with poor credit are statistically more likely to file claims. This leads insurers to charge higher premiums for high-risk drivers.
However, you still have options to find affordable coverage by shopping around and leveraging discounts. Insure on the Spot specializes in insuring high-risk drivers and offers free quotes without a credit check.
Call 773-202-5060 today for a free, no-obligation quote to explore your options.
Why Does Bad Credit Affect Car Insurance Rates?
Bad credit increases car insurance costs because insurers use credit history as an indicator of risk. Drivers with poor credit are statistically more likely to file claims, making them a higher risk to insure.
- Credit-based Insurance Score: Insurers use a specialized credit-based insurance score, derived from your credit report, to assess your risk. Factors like payment history, debt owed, and credit utilization contribute to this score.
- Legal in Illinois: In Illinois, using credit history to set insurance rates is legal. Insurers conduct soft credit inquiries (which don’t affect your credit score) to assess your risk, and if you have bad credit, expect higher premiums.
- Impact on Premiums: Drivers with lower credit scores are charged more because insurers consider them a higher risk, even if they have a clean driving record.
Although credit plays a role, insurers also factor in your driving record, claims history, age, and more. Improving your credit score over time can help reduce your premiums.
How Much More Will I Pay for Car Insurance with Bad Credit?
If you have bad credit, expect to pay significantly higher premiums. Studies show that drivers with poor credit can pay 50% to 100% more than those with good credit.
- National Impact: Drivers with poor credit may pay 90% more for minimum coverage and 49% more for full coverage compared to those with excellent credit.
- Illinois-Specific Rates: In Illinois, a driver with poor credit may pay upwards of $4,000 for full coverage, nearly double the cost for someone with excellent credit. These increases are substantial, and the difference can often be more than the premium increase from an at-fault accident or DUI.
While bad credit can raise your rates significantly, shopping around and comparing quotes from multiple insurers can help you find a more affordable policy.
How Can I Lower My Car Insurance Costs if I Have Bad Credit?
Even with bad credit, there are strategies to lower your car insurance premiums:
- Shop Around: Different insurers weigh credit differently. By comparing quotes from various companies, especially those known for working with high-risk drivers, you can find better rates. Insure on the Spot can help by comparing multiple carriers to find the best deal for you.
- Specialty Insurers: Some insurers specialize in offering policies to drivers with poor credit. These companies may not use credit scores as heavily in underwriting and can offer better rates for high-risk drivers.
- Discounts: Take advantage of discounts such as safe driver discounts, bundling auto and home insurance, or multi-car discounts. Some insurers offer discounts for things like good driving habits, even if you have bad credit.
- Adjust Your Coverage: Consider reducing your coverage to meet Illinois’ minimum requirements or increasing your deductible to lower premiums. But be careful not to drop essential coverage, such as liability.
- Choose a Cheaper Car: The type of car you drive affects your insurance premium. A high-end or sports car can be expensive to insure, so consider switching to a more affordable vehicle to lower your rates.
These steps can help lower your insurance premiums despite a poor credit score.
Can I Get Car Insurance Without a Credit Check?
Yes, it’s possible to get car insurance without a credit check. Some insurers, like Insure on the Spot, offer policies without pulling your credit report, which means you can get a quote without impacting your credit score.
- Specialized Companies: Some providers, such as CURE, Dillo, and Empower, offer no-credit-check insurance, though their availability is limited to certain states. In Illinois, Insure on the Spot is a great option for obtaining a quote without a credit check, allowing you to explore your options without worrying about your credit score.
- Assigned Risk Plan: If you can’t find coverage through private insurers due to poor credit, Illinois offers an assigned risk pool where high-risk drivers are guaranteed coverage. However, premiums through the assigned risk pool tend to be higher than through regular insurers, so it’s best to explore other options first.
Getting a car insurance quote without a credit check is possible and a great way to explore your coverage options.
Will Improving My Credit Score Help Lower My Insurance Premium?
Yes, improving your credit score can lead to lower car insurance premiums. Over time, as your credit score improves, insurers are likely to view you as a lower-risk driver, which will result in lower rates.
- Impact on Premiums: Moving from a poor to a fair or good credit score can reduce your premiums by 15–20% on average. Even small improvements can make a significant difference in your rate.
- How to Improve Your Credit:
- Pay your bills on time.
- Reduce your outstanding debts, especially high-interest credit cards.
- Avoid opening new credit accounts when shopping for insurance.
- Check for errors on your credit report and dispute inaccuracies.
- Use tools like secured credit cards or credit-builder loans to boost your score.
- Pay your bills on time.
As your credit score improves, be proactive about shopping for new quotes. Many insurers will re-rate your policy based on your new credit score, leading to potential savings at renewal time.
Can I Be Denied Car Insurance Because of Bad Credit?
In Illinois, you cannot be denied car insurance solely due to a bad credit score. While bad credit may result in higher premiums, insurers will still offer coverage if you are otherwise eligible. However, insurers may refuse coverage if multiple high-risk factors (such as a DUI, at-fault accident, and poor credit) are present.
- Assigned Risk Plan: If you can’t find coverage through private insurers, the Illinois Automobile Insurance Plan will provide a policy. While premiums through this plan can be high, it ensures you meet legal insurance requirements.
In general, shopping around for quotes and working with an experienced insurance agency like Insure on the Spot can help you secure coverage, even with bad credit.
Frequently Asked Questions (FAQs)
Q: Why does bad credit affect car insurance rates?
A: Insurers use credit scores to assess risk. Drivers with lower credit scores are statistically more likely to file claims, which leads to higher premiums to offset that risk.
Q: How much more will I pay for car insurance with bad credit?
A: Drivers with bad credit often pay 50% to 100% more for car insurance. In Illinois, a driver with poor credit might pay around $4,000 for full coverage, compared to about $2,000 for someone with good credit.
Q: How can I find affordable car insurance if I have bad credit?
A: Shop around for quotes from multiple insurers, consider specialty providers, use discounts, and adjust your coverage. Insure on the Spot can help compare rates to find the best deal for you.
Q: How can I improve my credit score to get better insurance rates?
A: Pay bills on time, reduce debt, avoid opening new credit accounts, and correct any errors on your credit report. Improving your credit will lower your insurance premiums over time.
Q: Are credit checks for car insurance allowed in every state?
A: No, a few states (California, Hawaii, Massachusetts, and Michigan) prohibit credit-based pricing for car insurance. In Illinois, insurers can use credit history to set premiums.
Q: Which car insurance companies will insure drivers with bad credit?
A: Most major insurers offer policies to drivers with bad credit, though the premiums may be higher. Insure on the Spot can help Illinois drivers find affordable coverage despite bad credit.
Q: Does getting car insurance quotes hurt my credit score?
A: No, getting insurance quotes involves a soft credit inquiry, which doesn’t affect your credit score.
Get a Quote Today!
Don’t let bad credit keep you from getting the coverage you need. Call Insure on the Spot at 773-202-5060 or get a free, no-hassle quote online today. We specialize in helping high-risk drivers find affordable insurance in Illinois. Get the coverage you need without worrying about credit checks!