Driving legally

Car insurance and bad credit don’t always go together. If you have a bad credit history or have filed for bankruptcy, it is likely that banks will refuse to lend you money.

In this situation, you may need to use 2nd, 3rd or 4th chance creditors. Did you know that there are solutions? Here is some valuable advice from Assurances Multi-Risques.

Underwriting criteria

When you apply for car insurance, the insurance company will evaluate your application based on a number of factors; these are called underwriting criteria. The following factors will affect your car insurance premium and, sometimes, whether or not the insurer will accept your application:

  • An insurance history
  • Failure to pay your premiums
  • A poor driving record
  • A high claims frequency
  • Bad credit (a bad credit score)

The insurer will want to decide if you are a high risk to them.

Asking about your credit score


When you buy car insurance, your insurer may want to check your credit score. This is not a credit inquiry and it has no impact on your credit report.

The credit score is a rating between 300 and 900. It takes into account your credit history and how well you manage your debts. This score is obtained from credit reporting agencies such as TransUnion and Equifax.

For an insurer, your credit score is a good indicator of your ability to maintain and repair your property. The higher the credit score (good), the lower the likelihood that the insured will make a claim. By the same token, the reverse is also true.

Having said this, you have the right to refuse to have your credit score consulted and the insurer will still be obliged to offer you insurance products. However, you would not be guaranteed the best protection or the best price.

Specialized insurance products

Did you know that there are insurance companies that specialize in what is called non-standard coverage? These companies offer products to customers with bad credit, for example.

If you want to drive in Quebec, you must have car insurance.

The car insurance premium offered will probably be higher than with regular car insurance. However, it is a worthwhile investment. You will be able to get back behind the wheel with adequate insurance coverage while also rebuilding your reputation with insurers. It’s better than putting your car in storage until your financial situation improves!

A broker can help you

Finding a non-standard car insurance policy can be a complicated process. An independent insurance broker can help and advise you in this search to find the best car insurance coverage for you. Remember, everyone has a right to adequate car insurance coverage!