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Auto Insurance, Canceled, bad credit - help!

Submitted by on Mon, 06/05/2006 - 08:46
Posts: 202330
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Hi There,

I was hoping someone could help me, I was just canceled on my car insurance, and in order to renew I need to pay in full! I don't have $2,000+ to get reinstated.. I need my car in order to get to work, does anyone know where I can go, or what I can do to resolve this???

I have gotten myself into quite a bind, I was just recently 30 days late on my car payment, I have had a charge off in the past few years from a credit card I had in back in college. Given those 2 things my credit score is aweful and I have been denied a personal loan from a Federal Credit Union.

Is there anything I can do? can anyone help me?

sincerly,

Mark
-Financial Disaster


Hi Mark

Don't feel sad. Have you thought about a secured card? You need to pay your account if you want to keep your car. Talk to your bank whether they will be able to help you in this situation.

I have heard about banks that can help you out in such situations if you have a good business relation. If nothing works, you can try for a second mortgage. But be careful before making this move. Your assets will be at risk if you default in your payments. Look for some second job to roll your expenses.


Submitted by Gretchin on Mon, 06/05/2006 - 09:05

Gretchin

( Posts: 482 | Credits: )


I don't own so taking out a 2nd morgage is not an option.

I will try the some other insurance companies that might be more willing to finance me. I am making my car payments first before any bills as I know I can't have it reposessed! (I guess it could get worse huh?)

thank you for your responce(s) is there any other option?

Thanks Again
-Mark


Submitted by on Mon, 06/05/2006 - 09:30

( Posts: 202330 | Credits: )


You will be able to find a company that I believe didn't even do a credit check on me. Another one did and the difference was 1200 a year. Getting car insurance online is easy. They will let you print out the new insurance cards. You just drop them off at the DMV, and depending on your state you may even be able to do it online instead of going in.

I think that it stinks they look at the credit reports. I bet more people pay there car insurance instead of letting it go into collections as everyone needs it. According to them the reason behind the credit report is that if you have bad credit you have more of a chance to get into an accident. hehe I read that on one site that explained why a report was needed.

Good Luck


Submitted by Billyknep on Mon, 06/05/2006 - 10:26

Billyknep

( Posts: 30 | Credits: )


Yeah I don't know how they get there information. I have on my credit report. IRS judgement for nearly 12k dollars that was garnished from my paycheck. I have a judgement from a CA for 1600 dollars. I have one credit card account that was charged off and sent to a collection agency. I just paid that off in full. I have another collection agency mark on my credit report that I'm hoping to make a settlement with this week or next.

And I still got insurance. Were you late on your car insurance payments as well ever? Something has to give them reason I'd think to check your report.
The IRS judgement was horrible but in the end I did my taxes over again and the irs sent me a nice check for nearly 14k dollars after all the interest it got.

The Collection agency judgement was just paid off last week in full.


Playing MMORPG video games online really screwed me up from 1999-2005 and beyond. I let my addiction to the game ruin my credit.


Submitted by Billyknep on Mon, 06/05/2006 - 11:00

Billyknep

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Hi, I Joined the forum and this is my screen name, sillihkram is my name backwards :-)

I am getting nervous I even got turned down for a loan w/ a co-signer! I don't know what else to do.. I thought a personal loan is/was my only answer and I can't get approved for one!

should I think about going to a debt consolidator to settle my Bank of America charge off? I am so in the dark I don't even know what "charge off" means. Is it when a company writes it off as a loss? can I even do anything about it now? who would I contact if it's been sold off to collections so many times?

oh man I am worring myself to death and I just need to be able to get to work and back.. I am glad I joined though, you are all very helpful I am calling for qoutes everywhere, is there anything else I can do?


Submitted by MarkHillis on Mon, 06/05/2006 - 16:36

MarkHillis

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Charge off is a negative remark in your credit file. The creditor marks this status when they are unable to recover the total amount. Having a charge off does not mean that you are not obligated to pay the debt. The company can either sell this account to some other agency or pursue legal actions, if required.

Paying off the account will do good to your credit ratings. Although the negative remark has hit your file, but your credit will be viewed nicely if you pay it off.

Take a free consultation as one of the consultants will be calling you and discuss the matter. He will try to straighten the matter and offer you favorable options.


Submitted by Gretchin on Mon, 06/05/2006 - 17:07

Gretchin

( Posts: 482 | Credits: )


Wow, Mark's a cutie! ;-)
(sorry, I'm a shameless flirt, what can I say?)

A counselor will be in touch, and we're always around to answer any questions you may have along the way.

As far as your insurance, have you tried Safe Auto? They're minimum coverage, and are flexible with their down payments from what I hear.


Submitted by Jessi on Mon, 06/05/2006 - 17:17

Jessi

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It's just odd that you cannot get insured at all. Have you tried all the normal companies that you frequently see commericals for? Maybe a google search for car insurance will have something.

Do you have accidents, tickets, frequent late on insurance? Anything other then a charge off? Another option why not see if you can get yourself put under your parents insurance until your able to pay off or get the negitive marks removed from your credit report?

What about a personal loan where someone else is the main signer and your the cosigner or something?


Submitted by on Mon, 06/05/2006 - 20:04

( Posts: 202330 | Credits: )


Mark--I work for an insurance company..I am confused.....do you have a bad driving record that is preventing you from getting insurance w/ another company? The company I work for wants 3mths down...we have not gone into the credit rating YET, but are in the process.


Submitted by lgall on Mon, 06/05/2006 - 20:08

lgall

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Hi Mark!

Jessi is right, you ARE a cutie!!!

Mark, have you tried going to a local insurance broker? They can usually help out with this kind of thing. They usually don't have a brand name like Geico or something, but I bet they will help you...it's worth a shot!! Let us know how it goes.......

~Mary (Still flirting)


Submitted by Mary on Mon, 06/05/2006 - 23:07

Mary

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Mark: for some reason its not letting me PM you. Anyway, you should go online to Progressive and try them. I worked for them for about five years and I can tell you that they pretty much insure anyone!! Whether you have bad credit or 10 DUI's (yes I've seen them insure someone with 10 DUI's), they will insure you. I had them for a long time and they never charged me an overly outrageous downpayment either and I had bad credit too.

If you are still having trouble finding insurance, contact local insurance agents in your area. They often work with many different companies and can usually find something for you. I don't know about Massachusetts but in Ohio we have something called bonded insurance as well. This is where the insurance follows you instead of the vehicle. Basically, you have liability insurance so that if you cause an accident, the other person is covered but your vehicle would not be covered. My fiance has this for two reasons. One: he has bad credit and a bad driving record and its much cheaper than regular insurance. Two: his truck is old and not worth insuring. You should check and see if they have something similar in Massachusetts.

Lastly, if you find someone who will insure you but you cannot afford it, here are some things you can do temporarily to help lower the cost. First, if your car is not worth insuring itself, do not choose comprehensive or collisison coverage. You take a risk if you get into an accident though because your car will not be insured and you will have to pay for any repairs out of pocket. The other option is to raise your collision and comprehensive deductibles to the maximum allowed. For instance, a $500 deductible is going to cost you more money than a $1000 deductible. Again, if you should get into an accident you are going to pay more money out of pocket, but for a temporary solution if you're deperate to get insured, that's an option. Also, while it's generally better to keep your liability limits high in case you seriously injure someone in a car accident, you can lower your liability limits to the state minimum. That means you are not as well covered, but again, all of this can be done as a temporary solution to get you up and running and you can change these things anytime during your policy period after you get back on your feet. Your policy premium will go up if you do make changes but at least you'll have insurance and not have an enormous downpayment. Also, make sure the insurance company isn't automatically signing you up for any extras such as roadside assistance, etc.

Let me know if you still can't find something and I can find another high risk insurance company that does business in your state.


Submitted by Jenn on Tue, 06/06/2006 - 05:35

Jenn

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Mark-check in the town where you live,or close by for auto insurance. In our phone book under auto insurance,some say they will insure high risk drivers,etc.In order to get caught up you may have to find some part-time second job work. Talk to the counselor when they call they may have some other solutions for you-just don't get in a trap of taking out loans to pay loans-that ccan get you into deeper trouble.The credit counselors here are very knowledgeable and will probably have solutions you haven't thought of So take a deep breath and read some of the postings here in the forum,you'll probably find others in the same boat,and how they got out of it!Good luck,welcome and keep us posted :D ...Karen


Submitted by Bossy4455 on Tue, 06/06/2006 - 11:31

Bossy4455

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Thank you for all your responces!

ok progressive, geico, allstate, and just about every other major auto insurance company does't offer their services in Massachusetts.. seems like Arbella or Prudential are the only vendors and you can't even deal directly through them. I have been calling around and haven't gotten very far they all want 70-90% down because of non-payment cancelation (this is a nightmare)

I was canceled do to non-payment my driving record is not the greatest (but no DUIs) I don't know how my credit is affecting my renewal rate on my auto insurance but it is definetly stopping me from getting approved on a loan to pay for it.

I am trying to take Jenn's advice with the state minimum. I will let you know how it goes there has got to be some company that will take a chance on a bad credit/ bad driving record (man, do I sound like a bad package or what?) :|

I had a co-sign but they will not take the loan out for me.. and I respect that but thanks for all the sugestions. I am still trying to figure it out and I will let you know how it goes for me.

oh yeah it's a 2006 Scion tC I got in november so its definetly something I don't want to risk losing.

Thanks for the luck I think I'm going to need it :? :(


Submitted by MarkHillis on Wed, 06/07/2006 - 23:46

MarkHillis

( Posts: 6 | Credits: )


Mark: I found another insurance company for you to try. It's called Safety Insurance and their website said their a preferred insurance provider in Massachusetts. I don't know much about them, but I do know that they provide insurance in your state. There are also insurance companies that are solely online like e-insurance and places like that. Did you try searching the internet and getting some quotes from online sources as well?

Just remember to keep your deductibles high and liabiltiy limits low when you get your quote (so you'll have lower downpayment) but don't forget to raise your liability limits back up and lower your deductibles after you get the insurance. Your payments will go way up but at least you'll be insured and driving!! :)

Good luck with your search.


Submitted by Jenn on Fri, 06/09/2006 - 05:50

Jenn

( Posts: 50 | Credits: )


Just wanted to post an update:

Thanks everyone for their response! I had to put down $500 and got the rest finnanced through an arizona based company...

You guys are all great! thank you sooo much!

-Mark


Submitted by MarkHillis on Sat, 11/25/2006 - 20:47

MarkHillis

( Posts: 6 | Credits: )


hello,everyone! I'm new here. just log-in and say hi. hope i can be part of this community. I'm from tamana, Japan.
lol.


Submitted by on Sun, 08/02/2009 - 06:46

( Posts: 202330 | Credits: )


I used to work in insurance a while ago...couldn't make it in the business though...felt like I was shafting little old ladies when their claims were denied :roll:

The reason that most (not all) insurance companies check your credit is that studies have shown that people with poor credit are time and time again more likely to file multiple and even outragous claims when money is tight. You become a risk to their insurance company (because they make money on the money you pay in and they invest incase of claims and claims=less profit and it cuts into their comission). It isn't really fair at all judging someone by their past- to me it is like profiling.


You might look into companies like SafeCo.

GL
Chrissy


Submitted by chrissytex446 on Tue, 08/04/2009 - 18:43

chrissytex446

( Posts: 50 | Credits: )


I used to work in insurance a while ago...couldn't make it in the business though...felt like I was shafting little old ladies when their claims were denied :roll:

The reason that most (not all) insurance companies check your credit is that studies have shown that people with poor credit are time and time again more likely to file multiple and even outragous claims when money is tight. You become a risk to their insurance company (because they make money on the money you pay in and they invest incase of claims and claims=less profit and it cuts into their comission). It isn't really fair at all judging someone by their past- to me it is like profiling.


You might look into companies like SafeCo.

GL
Chrissy


Submitted by chrissytex446 on Tue, 08/04/2009 - 19:10

chrissytex446

( Posts: 50 | Credits: )


Just simply find some insurance company which unfortunately offers big budgetary balance, perfectly recognised not to mention exceedingly respected by simply buyers. It is possible to certainly see that one on your own neighborhood area


Submitted by on Thu, 11/18/2010 - 20:43

( Posts: 202330 | Credits: )


My concerns are: The amount can a provider legally cost to allow coverage holder out of his car insurance policy?
Just how much does your company charge when a person would like to stop and how much pressure do you use to maintain them?
What are some ideas something like that we can say if our customer has many months left on his existing auto coverage? Surely, many of us are not going to hold back until his renewal comes due each and every time.


Submitted by on Tue, 11/30/2010 - 06:59

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