Bankruptcy is a tricky, tricky thing to deal with, especially when you are dealing with car insurance and your premiums. Car insurance is basically based off of your credit score – among other things, but mostly your credit score.
If you have had fantastic credit in the past and you never thought in a million years that you would be faced with a bankruptcy charge, you probably have low rates.
Now though … in this day and age, tons of people that usually have had good credit in the past are losing their jobs and falling behind, forcing them to file for bankruptcy.
What does this mean for your premiums on your car insurance? Well, your premiums are something that will be affected if you do go into bankruptcy; however it is not the end of the world.
Bankruptcy is one step into getting your act together and while car insurance companies use your credit history as leverage to charge you lower or higher rates, eventually your credit score will regain its status and your rates will go back down.
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