Filing for bankruptcy protection in some cases can help a person’s financial situation tremendously by offering a clean slate to the debtor, but in some cases it may hurt you. For instance, declaring bankruptcy can affect your insurance premium in a negative way. Luckily, you may be eligible for discounts depending on your car’s safety features.
How Can Bankruptcy Raise My Rates
Most insurance companies look at your credit score when determining if you will be approved and what your premium will cost. Therefore, if you have recently been approved for a bankruptcy auto loan and you’re looking to insure you new vehicle they will see that you have recently filed for bankruptcy protection, and may raise your rates because you pose a higher risk to the company.
If you already had insurance through them and you’re not looking to insure a new vehicle then chances are they will not see the bankruptcy on your credit report until your policy is due for renewal. This means your premiums may not rise right away, but as soon as you renew your policy the rates could increase.
What Auto Insurance Discounts Can I Qualify for After Bk?
In some bankruptcy cases, usually chapter 7, if a debtor has equity in their vehicle the trustee may liquidate it to repay creditors. In these instances the debtor may need help getting a car loan during bankruptcy, which is here we come in. We help match bankrupt people with dealerships that accept bk clients. Once they are matched with a dealer willing to work with their situation, they could be driving their new car home that day.
Believe it or not new cars, although they are expensive, can save you money on your insurance. This is because they come with the latest and greatest safety features. Almost all insurance companies offer discounts on vehicles that have features such as: anti-lock breaks, anti theft devices, and electronic stability control. If your car has any of these features (or better yet all three) you may be eligible to save big on your premium.
Looking for help financing a car with bankruptcy on your credit? Look no further. We can help you get the financing you need to get into that new car and start saving on your insurance policy! Apply online today to see how much you pre-qualify for.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.