I head from my cousin that credit history is one of that factors that auto insurance companies in Oak Lawn, Illinois consider when setting car insurance rate. My question is, if I don’t have a credit card and most probably that would mean I don’t have a credit history can this be taken against me by auto insurance companies? Can they opt to not approve my application just because I don’t have a credit history? How does not having a credit history affect my ability to purchase auto insurance?

Nathan

Oak Lawn, IL

There might be a possibility that not having a credit history might affect your ability to purchase car insurance in Illinois. As you see Nathan, your cousin is correct that car insurance companies do consider a person’s credit history to set his/her auto insurance premium.

However, according to the Illinois Department of Financial and Professional Regulation (Division of Insurance), auto insurance companies cannot use credit history as the sole reason in taking unfavorable action against a person. The state of Illinois requires auto insurance companies to do one of the following in an event that a person does not have a credit history:

• Consider a person as having a neutral credit history;
• Consider a person as having other than neutral credit history; and
• Exclude credit history as a factor in setting auto insurance rate for that person.

For more information about setting auto insurance rate in Oak Lawn, Illinois you can ask the IL Division of Insurance or your auto insurance agent.

Is it possible for someone with an expired license to obtain car insurance in Illinois? Is there a difference between expired license and suspended license?

Erwin

Arlington Heights, IL

There are some insurance providers that will insure you even if you have an expired license. Typically these auto insurance companies will require that you provide proof of getting a valid driver’s license within a certain period of time. Genially it is thirty to forty five days – after your car insurance policy’s inception date.

Yes, there is a difference between an expired driver’s license and a suspended driver’s license. A license suspension is usually a temporary loss of your driving privileges for a certain period of time or until you meet certain reinstatement requirements that a state or jurisdiction required. Generally an expired driver’s license is due to a person not renewing their drivers license.