Car insurance can be expensive, even with safe driving and other available discounts. For those struggling with bad credit, the price of car insurance can climb even higher. According to insurance expert Laura Adams, “Many drivers are surprised to learn that having poor or even average credit typically means paying more for auto insurance than if you have excellent credit. How much more depends on your insurer and the state where you live.”
Many car insurers raise rates on customers with bad credit. One way of dealing with this is to pursue a no-credit-check auto insurance plan, but this can end up costing even more if not done carefully. Another option is to look for a company that offers usage-based auto insurance.
In this guide, we will discuss some of the best options and methods for finding and using no-credit-check auto insurance and non-credit based car insurance, as well as revealing how to improve credit scores and other ways to save on car insurance.
How your credit score impacts your car insurance rates
Auto insurance companies generally perform a credit check on new customers as they are signing up for insurance. As reported by insurance expert Laura Adams, “California, Hawaii, and Massachusetts are the only states that prohibit the use of credit in setting auto rates. For drivers in the remaining 47 states, improving your credit means saving money on car insurance.”
When these insurers use customer credit scores to determine eligibility and rates, a significant portion of their equation is based on how likely a customer is to file a claim in the future. And the more claims a customer files, the more money it will cost the insurance company.
While this does mean that some people are paying more for their auto insurance, it also translates to some people paying less. A good credit score, driving record and low record of filing insurance claims will result in a lower premium. Inversely, poor credit ratings, bad driving records and frequent insurance claims filed in the past will lead to an increase in premiums. What this all boils down to is that people with higher credit scores are generally cheaper to insure, and so the insurers charge them less for that service.
Best car insurance for bad credit
In the auto insurance world, bad credit and high-risk drivers overlap. Both are categories that represent an increased risk of financial loss for the insurance company. As a result, many of the best companies for bad credit drivers are the same as those for high-risk drivers. It is not uncommon for bad credit to be lumped under the category of high-risk driver. If you are looking for cheap car insurance with bad credit, the key is to find the auto insurance companies that don’t check credit.
What is no-credit-check auto insurance?
In most of the United States, auto insurance companies use credit checks as part of their algorithm for determining customer rates. However, some companies offer what is called no-credit-check auto insurance. A no-credit-check insurance plan is exactly what it sounds like. These are insurance policies that do not factor your credit score into it. If you are applying for auto insurance and they don’t ask you for your social security number, then the odds are excellent that it is a no-credit-check insurer. Inversely, if your insurer does ask for your social security number during the application process, then they intend to run a credit check.
When shopping around for a no-credit-check auto insurer, make sure to find a few companies and compare them, as the premiums can be pricey. The higher cost of these no-check plans is the company’s way of creating a protective buffer around financial risk. Some customers will pay more than they might with a credit-check, while others will pay less.
Top no-credit-check insurance companies
No-credit-check insurance companies are rare and often provide only localized coverage. However, numerous larger insurers offer usage-based auto insurance plans, which will not factor your credit rating into your premium. Allstate and Progressive are both large auto insurers that provide usage-based policies and have been reported at various points not to use credit checks. However, their algorithms are continually evolving, and so the only way to be sure that they will not require a credit check is to ask them or to enroll in one of their usage-based policies.
How to improve your credit score
When looking to improve your credit score, there are a few guidelines that rise to the top. Below is a list of preferred steps and strategies for improving your credit score. For an in-depth look at how to improve your credit score, see the Bankrate guide.
- Make payments on time. Few things hurt your credit more than not making payments. Inversely, making timely payments is one of the best ways to increase your score.
- Never make less than the minimum payment. Making less than the minimum payment is not as bad as not paying at all, but it will still leave your account delinquent until the full payment is made.
- Do not acquire premiums larger than you can afford. If the premiums on a loan are going to be hard to pay, do not accept the loan. Taking such a loan is a recipe for developing bad credit and a lot of late fees.
- Maintain a low credit utilization rate. The more of your total credit that you keep available, the less risky your lender will see you. Using only 30% or so of your available credit is optimal for growing and maintaining a good credit score.
- Use credit monthly and pay it down monthly. Use credit monthly and pay it off that month. When you do this, you can grow your credit rating for minimal cost, as paying things off immediately can avoid most of the interest accrual.
Other ways to save on car insurance
Beyond improving your credit score, there are other ways to save on car insurance. Below is a brief list of some of the most recommended strategies for auto insurance savings. A detailed guide of tips and strategies can be found at Bankrate.
- Look for discounts
- Reduce your coverage
- Raise your deductible – it may cost you more in an emergency, but it will lower your premiums
- Compare quotes from multiple companies to get the best deals
- Bundle insurance plans as this can lower your rate
Another good thing to try is negotiating with your insurer. Insurance expert Laura Adams recommends, “As you build credit for the first time, or after recovering from financial hardship, ask your auto insurer to re-rate you. Remember that not all insurers use credit to evaluate you or use it in the same way. So, it’s critical to shop and compare multiple policies to get the best car insurance for bad credit.”
Car Subscription Australia: How to Choose a Car Subscription Service
In uncertain times, you might think differently about things. For example, instead of buying and owning a car, there’s a chance you could have recently searched ‘car subscription Australia’, only to be confused at what is out there in the car subscription service space.
That’s understandable – car subscription is a new idea, a new way of thinking about essentially paying to borrow a car long term and being able to swap cars if your circumstances change. Or, if you don’t need a car anymore, to simply return it without having to worry about the fuss of selling the vehicle.
So what is car subscription? How does it work? What type of person would it suit? How long has it existed? Who invented it? These questions will be addressed in this article, where we take a look at the pros and cons of car subscription, and – perhaps importantly for those out there who aren’t quite sure it’s the right solution for them – we’ll look at car subscription vs buying and car subscription vs lease.
What is car subscription?
If you’ve ever paid to watch a movie using your Apple TV or Google Chromecast, this concept will be easy to understand: you pay to borrow the movie instead of buying a DVD from a shop and keeping it at home as a possession, while only watching it every now and then – if that.
With car subscription you simply pay to use a car for a period of time. And the price you pay to subscribe includes all the costs you don’t want to have to deal with when you own a car – servicing, insurance, roadside assistance, registration and depreciation.
Car subscription allows users to subscribe to a car to use – and typically, the best plans offer monthly vehicle use periods, allowing you to either keep the car you have, or return it if you don’t need it. Or, if you need to swap from a city-friendly hatchback to a seven-seat SUV, some subscription services allow you to do that, often at an extra cost.
Are car subscriptions available in all locations? Sadly, not yet. The idea is pretty new to Australia, with a number of services launching in recent years. They include Carly, Carbar, Hello Cars and Blinker (which lots of people think is actually called Blinkers!), and you can find them online or in the app store.
Depending on your location, you might have access to one, some, or all of these services. Simply search ‘car subscription’ plus the name of your city, be it Sydney, Melbourne, Brisbane, Perth or somewhere else, or just type in ‘car subscription near me.’ A lot of these services are in their infancy, so you might not have access to one depending on where you live. Keep that in mind.
Globally, car subscription has been around a while longer. The first service was apparently established in Hawaii about a decade ago. It’s come a long way since then, with luxury car brands now getting in on the action: Volvo has its own plan called Care by Volvo, and that will be launched in Australia in 2021. While in Europe, Jaguar Land Rover has recently launched Pivotal, a subscription service that could allow you to switch between an electric car for urban duties, or an off-roader for adventure times.
Who does car subscription suit?
Essentially, if you’ve thought to yourself: ‘I’d love to be able to drive rather than take public transport,’ then car subscription could be for you.
Further to that notion, it could suit just about anyone who thinks they need a car at some point in their lives. You might be the sort of person who only uses a car occasionally, travelling to friends’ places or back home to the country.
Or you work as a contractor and need to get to an office over a three-month period. Or you’ve got a family SUV and just want something smaller for your grown children to use because they keep stealing your wheels.
Pros and cons of car subscription
The pros are pretty clear: you don’t have to pay a huge lump sum for a depreciating asset, and the costs of ownership are all taken care of. That’s the biggest advantage.
Other ticks for car subscription include the fact you can change cars if your needs or requirements shift. You can also cancel your plan if you don’t need a car anymore. And while you don’t ‘own’ the car you subscribe to, you don’t have to share it with anyone else – which could be a reason you’d choose a subscription service over a car share service like GoGet.
There are a few cons, though. The subscription service mightn’t have the car you want or need at a specific time. You mightn’t be able to access a service at all, based on your location. The costs can be quite high, so you need to make sure you’re actually getting your money’s worth. And there can be rules around letting other people drive the car, too.
Car subscription vs buying & lease – how do they compare?
If you’ve ever bought a car outright, you know you need a wad of cash to get the car in your driveway. That’s not going to suit everyone’s budget.
Likewise, if you’ve financed or leased a car, you need to know you’re going to have guaranteed income to be able to cover the payments for the period of the lease or car loan. Miss payments, and your car could be repossessed, leading to a bad credit rating.
But with car subscription, there’s no huge buy-in cost, and you can get out at any time. That’s part of its appeal – some providers offer no deposit subscription, and there are even some that have a no credit check policy prior to approval. That could be heaven-sent if you’ve got a chequered history with past payments.
Then there are other elements to consider when weighing up a subscription vs buying or a subscription vs lease. Only a car subscription allows you to change cars easily, and some subscription services also offer delivery and collection of your car when you sign up or finish with it.
Plus, if you happen to be in an accident, you’ve got a guaranteed loan car from most subscription providers.
How much does a car subscription cost? What types of cars are available to subscribe to?
That depends on the provider, the terms and conditions, and the type of car you need. Bigger vehicles or more luxurious models will cost you more to subscribe, as they cost more to buy.
To give you an idea, Carbar offers something like a 2016 Kia Cerato sedan for $139 a week. Think you want an SUV instead? Consider a 2019 Mitsubishi ASX or 2018 Subaru Forester for $189 a week. Want seven seats? You could get a 2018 model Toyota Kluger for $229 a week. Got posh tastes (or just want to impress someone?) Maybe a 2019 Jaguar F-Pace could be your go, but it’ll set you back $429 per week.
Just for balance, you might want to check out what Carly has on offer. You could get a 2015 Holden Barina for $133 a week or do your bit for the environment and get a hybrid Hyundai Ioniq 2019 model for $287 per week.
Or maybe you want to subscribe to a car to allow you to drive for Uber or Ola – check the terms and conditions of your subscription contract before just assuming that’s okay! – and a 2018 Toyota Camry for $336/week could be perfect for you.
The above prices are indicative and may not be correct at the time you’re looking for a car, and that’s the thing: prices vary between providers, and so will the stock available to you.
So, you might be desperate for a seven-seat SUV for an upcoming family trip – but you can’t get one. That’s a pretty sizeable downside.
Plus, most subscription services don’t offer you a brand-new car. If you’re after that new car feel and smell, you might not get it – there are near-new models on most of subscription site listings but expect to pay more for a newer car than you would one that’s older.
How many different car subscription services/companies are there in Australia?
There are several reputable subscription providers out there for you to shop between – provided the service is offered in your area. The ones we’ve already mentioned include Carbar, Carly and Hello Cars.
Blinker works a bit differently – you can visit a dealership and see what stock is available, then choose a car and pay as you drive. Other options include Motopool and Popcar.
The subscription plans vary by provider: some require you to pay a joining fee, others don’t; some will deliver and collect your car, others won’t; some offer short-term cancellation, others require up to 30 days’ notice.
You really need to make sure you’re getting the right car and the right subscription plan for you, so make sure you do your research.
Not sure you want to commit to a car subscription? You could try a car sharing service first. Take a look at GoGet, or Car Next Door – both of which are run differently to the ‘regular’ subscription services.
How do you choose the best car subscription service to suit your needs?
First off, consider your location. Search ‘car subscription near me’ or ‘car subscription’ and the name of your town or city to see if you can access a car subscription network. That’s a crucial step.
If you’ve got plenty of options available to you – if you live in Sydney, Melbourne or Brisbane/Gold Coast, this could be you – then it’s simply a matter of seeing what’s available to you. But again, be sure to read the terms and conditions to see what you are – or more importantly, are not – allowed to do with the car while it’s in your possession.
77 hospitals that received $5M to $10M in PPP loans
Hospitals with fewer than 500 employees and medical offices were among the top recipients of Paycheck Protection Program loans from the federal government, according to data released July 6 by the Small Business Administration.
The data only includes companies that received loans of more than $150,000. The White House said that more than 86 percent of the loans were for less than $150,000, so the data reveals just a snapshot of the companies that received funding, according to The New York Times.
The disclosure comes after lawmakers pressed the White House to be more transparent about the loans, established as part of the $2 trillion Coronavirus Aid, Relief Economic Security Act.
The data puts the funding into ranges, with the top amount being $5 million to $10 million and the lower end of the range being $150,000 to $350,000.
Here is a list of the hospitals receiving $5 million to $10 million, by state.
Note: Some states didn’t have hospitals receiving $5 million to $10 million.
South Peninsula Hospital (Homer)
Mount Graham Regional Medical Center (Saffer)
Bakersfield Heart Hospital
Barlow Respiratory Hospital (Los Angeles)
Central Valley Specialty Hospital (Modesto)
Mammoth Hospital Southern Mono Healthcare District (Mammoth Lakes)
Aspen Valley Hospital
Southwest Health System (Cortez)
Spanish Peaks Regional Health Center (Walsenberg)
Wayne Memorial Hospital (Jesup)
Kauai Veterans Memorial Hospital (Waimea)
Kona Community Hospital (Kealakekua)
Buena Vista Regional Medical Center (Storm Lake)
Delaware County Memorial Hospital (Manchester)
Greater Regional Medical Center (Creston)
Mahaska County Hospital (Oskaloosa)
Montgomery County Memorial Hospital(Red Oak)
Bonner General Health and Hospital (Sandpoint)
Crawford Memorial Hospital (Robinson)
Jackson Park Hospital (Chicago)
McDonough District Hospital (Macomb, Ill.)
Roseland Community Hospital (Chicago)
Touchette Regional Hospital (Centreville)
Decatur County Memorial Hospital (Greensburg)
Kansas Medical Center (Andover)
Newman Regional Health (Emporia)
Labette County Medical Center (Parsons)
Harrison Memorial Hospital (Cynthiana)
Abbeville General Hospital
Mount Desert Island Hospital (Bar Harbor)
Dickinson County Healthcare System (Iron Mountain)
Kalkaska Memorial Health
North Ottawa Community Hospital (Grand Haven)
Scheurer Hospital (Pigeon)
Three Rivers Health
Aitkin Community Hospital
Community Memorial Hospital (Cloquet)
LifeCare Medical Center (Roseau)
Tri County Hospital (Carlton)
Welia Health (Mora)
Cass Regional Medical Center (Harrisonville)
John Fitzgibbon Memorial Hospital (Marshall)
Perry County Memorial Hospital (Perryville)
St. Alexius Hospital (St. Louis)
Community Hospital of Anaconda
Sidney Health Center
Kearney Regional Medical Center
Nebraska Orthopedic Hospital (Omaha)
Androscoggin Valley Hospital (Berlin)
Huggins Hospital (Wolfeboro)
Speare Memorial Hospital (Plymouth)
Artesia General Hospital
Gila Regional Medical Center (Silver City)
Nor-Lea Hospital District (Lovington)
Carthage Area Hospital
Chenango Memorial Hospital (Norwich)
Eastern Niagara Hospital (Lockport)
Erie County Medical Center (Buffalo)
The Bellevue Hospital
Van Wert Health
McBride Orthopedic Hospital (Oklahoma City)
Lake District Hospital (Lakeview)
North Bend Medical Center (Bandon)
Santiam Hospital (Stayton)
North Philadelphia Health System
The Fulton County Medical Center (Mcconnellsburg)
Sana Healthcare-Carrollton Regional Medical Center
Copley Hospital (Morristown)
Grays Harbor Community Hospital (Aberdeen)
Prosser Memorial Health
Black River Memorial Hospital (Black River Falls)
Crossing Rivers Health (Prairie Du Chein)
Reedsburg Area Medical Center
The Richland Hospital (Richland Center)
Tomah Memorial Hospital
Pleasant Valley Hospital (Pleasant Point)
Powell Valley Healthcare
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