Posted on June 5, 2009 at 12:08 am can i still get auto insurance even if there's still a bankruptcy on my credit report? how does a BK affect my auto insurance, anyway?

Posted on June 5, 2009 at 1:10 am You'll still be able to receive vehicle insurance even if there is a history of bankruptcy on your credit report. However not all insurance companies will not be able to provide the coverage that you need, so you'll need to look around and shop for the right company that can help you. Also, expect that you'll be having higher premiums than other consumers who have a better credit standing.Of course, it doesn't mean that a better credit score automatically equates to a good insurance premium. Insurers also take into consideration the model of your car, your location, your driving record, and the like.

Posted on June 5, 2009 at 1:58 am The reason why you will be having higher rates when you file for a bankruptcy is because lenders are assessing your "risk factor" to them. After all, it is part of business's nature to evaluate who their potential clients will be, and they want to make sure that their customers will be faithful in making their payments to them. It may seem unfair from a consumer's standpoint, but when you think about it, some companies outright refuse to offer or renew insurance policies after bankruptcy.

Posted on June 5, 2009 at 9:30 am Exactly. And on the flip side of that, there are insurance companies who probably don't care what a potential customer's credit is like before extending them coverage. These companies may be desperate for business or have no regard for how they are bringing in the cash. It kind of reminds me of the credit card companies who mail pre-approved lines of credit to college kids with no established credit history, or even to borrowers who are already have loads of credit card debt.