Important to car insurance despite SCHUFA
- Observe restrictions
The insurance benefit is limited to the liability insurance. As a rule, the vehicle may also be used only for private purposes.
- Restrict driver’s circle
Use the vehicle best only as a solo driver. Sometimes it can make sense to have the vehicle insured by another person.
- Compare fares
Pay attention despite a negative SCHUFA on a high cover sum. It is best to compare different insurance rates and their conditions exactly before the conclusion of the contract.
A negative SCHUFA entry can hinder consumers when concluding new contracts or when applying for loans. When it comes to car insurance, you also have to expect disadvantages in the event of an insufficient SCHUFA score. But by law, insurers are obliged to offer policyholders car insurance without SCHUFA. These are usually the basic liability insurance. Thus you do not necessarily have to reckon with a rejection of the insurer even with negative SCHUFA.
How to find a car insurance despite negative Schufa
Even if the conditions for tariffs without Schufa in car insurance are usually worse, you should perform an insurance comparison before concluding a contract. Thus, not only the benefits of basic tariffs in motor insurance, but also the costs differ. This is often because the respective car insurers judge the creditworthiness of policyholders differently. For example, a consumer with a negative SCHUFA may be worse off with one insurer than another.
With this information in the comparison calculator you come to a favorable rate:
- It is best to choose the semiannual or annual payment method.
- Use the insurance only for yourself.
- Specify private usage.
- Refrain from full or partial coverage.
Insurance companies are required to insure
Every car owner or owner in Germany is obliged under the compulsory insurance law to take out liability insurance for his vehicle. Without this insurance coverage, the vehicle will not be licensed for use on the road. In this case, the legislator imposes the liability insurance obligation on the insurer’s right to refuse to conclude a contract in the event of a negative SCHUFA.
Bad credit rating no grounds for refusal
Thus, it is possible for consumers to complete a car insurance with a bad credit rating. They must reckon with worse conditions and waive the possibility of comprehensive insurance. Some insurance companies also refrain from a SCHUFA exam and offer appropriate tariffs. Policyholders in this case have to reckon with higher costs and basic protection.
A fundamental refusal of the car insurance with negative Schufa is possible only under certain conditions.
Difference in comprehensive insurance
The comprehensive insurance does not belong to the statutory insurance cover. Therefore, insurance companies also have the right to refuse the application for this insurance in case of negative SCHUFA.
Limitation of benefits by SCHUFA entry
When considering creditworthiness, car insurance is often less concerned with the actual financial situation than with the statistics. For example, drivers with poor credit ratings statistically cause more accidents. In addition, the risk of accidents increases because drivers with negative SCHUFA often use older vehicles which increase the risk of accidents. The insurance companies want to protect themselves by their rejection or the restriction of the performance of high costs that come in the case of benefits on them.
This is how a SCHUFA query from a bank differs from that of an insurance company. First and foremost, the bank wants to know whether the debtor has a good payment history when making a credit inquiry.
Contribution increase with negative SCHUFA
If the credit rating decreases during the term of the car insurance policy, insurance companies have the right to adjust the contributions. However, this right must be granted in the insurance contract. There, policyholders must also agree that SCHUFA queries may be made regularly during the contract period. If neither the query nor the increase in the contract is fixed, policyholders can object or seek legal assistance in order to prevent a contribution increase.
Limitations at a glance
You have to expect this if you want to take out a car insurance with a negative SCHUFA entry:
- Refusal of a comprehensive insurance (full or partial)
- Limitation of the coverage to the legally prescribed minimum
- No additional services such as damage-free discounts or second-car discounts
- Exclusion of possible contractual clauses such as the “waiver of plea of gross negligence” or “deduction new for old”
In order not only to use favorable conditions for car insurance, you should regularly improve your credit rating. Here are 7 tips to improve your credit rating.
In these cases, a refusal threatens
In exceptional cases, there is the possibility that an insured may be rejected by the insurance industry. The following reasons can lead to a rejection:
- Bankruptcy of the applicant
If the policyholder is insolvent, it is very uncertain for the insurance company whether it will still receive the payment of the premiums.
- Applicant has given disclosure
In the case of an application for disclosure by the applicant, the risk of a loss of premium payments for insurers is also too high.
- Insurance contract has already been terminated in the past
If the policyholder has previously used a car insurance from the same provider and the contract was terminated due to poor payment practices, the insurer may refuse to reinsure.
What to do if rejected?
If you have been denied car insurance, you can try to bargain. Often the insurance companies require an annual advance payment of liability insurance to insure anyway. Otherwise, policyholders will only have the opportunity to search until they find an insurer who offers them liability insurance. In most cases, these tariffs are significantly more expensive than for consumers with good credit ratings.
What does SCHUFA say about me?
Before taking out motor insurance, most insurers arrange a SCHUFA request. With the help of the data of the credit agency, they can check the creditworthiness of a potential policyholder.
Consent to obtain the SCHUFA information necessary
However, the insurance may not retrieve the data without the consent of the applicant. Consumers have the right to refuse the SCHUFA information. However, in this case, they must expect to receive a refusal for comprehensive insurance.
These data are stored by the SCHUFA
The SCHUFA stores the following data:
- Number of accounts
- Number of loans and loan amounts
- Contracts (for example, mobile phone contracts)
- Open invoices
- Current and former addresses
- adhesion threats
However, loans without Schufa can be left out if they are not noted by the Schufa. On the basis of this data SCHUFA determines the so-called SCHUFA score. On a scale of 1 to 100, the creditworthiness is assessed. 100 indicates the best credit rating. The value is also influenced by whether, for example, loans are repaid on time or whether direct debits are reversed.
Consumers can view all SCHUFA data
If you want to know which data the SCHUFA has stored about you, you can get free access to your data once a year. This right is guaranteed by section 34 of the Federal Data Protection Act.
Other credit bureaus
Although it is mainly spoken by the SCHUFA, but there are other credit bureaus in the market, the insurance companies help in the assessment of creditworthiness. These include:
- Delta Vista
For which provider the insurance company decides, it is up to him. As a rule, insurers use SCHUFA data because it provides access to the data sets of more than 66 million people in Germany.
Car insurance comparison
- Vehicle change, Smart Fortwo 0.9 Coupe, 66 kW (1313 / EGF), first registration: 07/2013, planned acquisition & holder license: 09/2017, cash purchase
- Use: Only private (including commuting), 6,000 km / year, road (public), Erstwagen, Halter u. Driver = VN, approval in Munich (M)
- Policyholder: male (born 1994), single, student, no children, place of residence: 80935 Munich
- Liability (SF2) and full insurance (SF2) with 300 Euro SB incl. Partial insurance with 150 Euro SB, workshop selection free (all tariffs), annual contribution payment method
- Cheapest offer: Cosmos Direkt (basis with workshop binding), annually 796.65 euros
- Most expensive offer: Rhion (plus with workshop service), annually 1,649.83 euros