SR22 on Bad Credit Score
Can I get SR22 on a bad credit score?
An SR22 policy is required when you commit a traffic violation in your state and the authorities direct you to file for one as it acts as a minimum motor liability insurance in case you are involved in an accident.
Though it is commonly referred to as “SR-22 Insurance”, it is not an insurance. It is rather a form filed by your insurance provider with state licensing authorities – Department of Motor Vehicles(DMV), Bureau of Motor Vehicles(BMV) or secretary of state as applicable. This form indicates that you have the state required minimum motor liability insurance in case you are involved in an accident.
Filing for an SR22 policy need not be an uphill task but having a bad credit score may pose certain challenges that might make the process a bit difficult. However, it is not impossible to obtain an SR22 with a poor credit score as there are certain options that you can look into which might make the process less troublesome.
How does my credit score affect my insurance policies?
Having a bad credit score will affect a lot of financial aspects of your life including your SR22 and auto insurance policies. The biggest drawback of having a bad credit score is having to pay more than the average premium for your insurance policy no matter what state you reside in. Additionally, such drivers will be categorized under the non-standard coverage tier for car insurance for bad credit.
- Studies show that there is a correlation between the credit score of an individual and the frequency and size of claims.
- Insurance companies believe that a person’s credit score and income tend to rise and fall together. A higher credit score ensures that you can afford to pay for minor damages yourself instead of filing a claim.
- Data has shown that drivers with bad credit who file claims tend to get higher payouts from their insurance providers than people who have better credit ratings. This makes these types of drivers a bit expensive to insure for insurance companies.
A high credit score gives insurance companies the impression that you’re capable of paying your bills on time, meaning you’re less likely to miss premium payments and vice-versa
Ways to find SR22 Coverage With Poor Credit
It is not impossible to find an SR22 provider even if you have a bad credit score. Here are some of the ways by which you can save on additional premium costs and find the policy which suits you the best without compromising on the overall coverage:
- Choose a telematics-based insurance company: A telematics-based insurer will calculate your car insurance costs based on your overall driving behavior. Although your credit score will still be taken into consideration, you can save on your premiums if you’re a safe driver.
- Inquire about discounts: Usually, drivers with a clean history get additional discounts on the purchase of an SR22 policy.
Also, insurance companies give out discounts upon request and you can qualify for one if you come under one of the following categories:
- People within certain age brackets
- Students not older than 25 years with an excellent grade point average (GPA)
- Students who are still covered by their parent’s insurance policy
- Retired Individuals
- For certain automobile types like economy or utility vehicles.
- Get multiple insurance quotes: Browse for the policy that you need from various insurance providers and compare their premium costs. Find the one which fits your budget and meets your expectations.
- Change your coverages: Reducing unnecessary coverage costs and increasing deductibles are effective ways to lower your auto insurance costs.
- Improve your credit score: The best way to save on your SR22 or other insurance policies is to improve your overall credit score. Here are some ways in which you can improve your credit score:
- Establish your credit
- Pay your bills on time
- Don’t max out credit cards
- Minimize the number of credit cards in use
- Stay on top of the credit report
Finding the right SR22 policy
Buying an SR22 policy is not necessarily a complicated task. We, at SR22InsuranceNow, are committed to helping you find the most appropriate and affordable SR22 policy that best fits your overall needs and requirements. Here are some of the reasons why you should consider coming onboard with us :
- Instant Free SR-22 Quote:We partner with the industry’s top agents to provide the best SR22 quote tailored specifically for your needs.
- Clear Info: The SR22 Insurance process is simple to navigate with our easy-to-understand info and State by State policy guides.
- Huge Savings:Our agents will find you a cheap SR22 insurance policy so you’ll get back behind the wheel fast, without spending a lot!