You have a negative SCHUFA and need to insure a car? This is a challenge, but it is definitely possible. In this text, we show you what you need to pay attention to when insuring your car and what options are open to you.
- Always insure your car against liability
- Keep the insurance as cheap as possible by some tricks
- Insure a car even in the case of insolvency and oath of disclosure.
So you stay mobile and have the possibility to keep or build up an income.
Negative SCHUFA – and now?
A loan installment not paid, a large sum borrowed for a renovation or the loss of an income and it is already happened: the "SCHUFA -score" becomes negative. This ruling changes a number of things, but not everything for the consumer. Therefore one thing in advance: a negative SCHUFA is "still" no oath of disclosure or a private insolvency. It does, however, block the taking out of further loans and makes many other processes in private business more difficult. It is admittedly "alarm stage red. However, you do not need to panic at the judgment.
Today, a car is no longer a luxury item. In fact, in most cases it is absolutely necessary for you to have a regular income. After all, you have to show up at work reliably and on time every day. In many cases, this is not possible without a vehicle of one’s own. Even the daily errands are not only time-consuming and inconvenient without a car, they are usually also much more expensive. The good news: the insurers and the legislators know this too. Therefore: do not be afraid of losing your insurance coverage if SCHUFA has given you a negative rating. All parties involved have an interest in keeping them income-generating. This also applies to the insurance of your car.
What does SCHUFA do? ?
SCHUFA is the "schutzgemeinschaft fur allgemeine kreditsicherung" (association for the protection of general credit). It is an information file with headquarters in Wiesbaden, Germany. SCHUFA stores practically all data relating to the creditworthiness of private individuals and companies. The purpose of SCHUFA is to give business partners the possibility to inform themselves about the solvency of the partner before concluding a contract. SCHUFA is incorruptible and quite valid in its information. However, with 813 million individual files, it can always happen that the entry is out of date. It therefore makes sense to check your SCHUFA score and make sure it is up to date. Otherwise, the SCHUFA entry may not be as good as it could be – for example, if a loan that has already been paid off is still listed.
What data is stored by SCHUFA?
SCHUFA stores the following data:
- Contact details of the person
- Number of accounts
- Number of credit and leasing contracts
- Number of credit cards
- Payment history, especially deviations
- Entries in public registers (warrants, oaths of disclosure…)
And, what many people don’t know: credit inquiries are also recorded. However, you should know that these requests will no longer be forwarded after 10 days. So if you need a loan, you better use an anonymous comparison portal and make a preselection. For the actual inquiry they take themselves then accordingly much time.
Creditworthiness query answers in seconds
Digitalization makes it possible: credit inquiries are now processed within seconds. Complicated telephone calls or even written correspondence are not necessary. As long as you have a decent income, you can get the credit you want quickly.
What credit agencies are there other than SCHUFA?
SCHUFA is the main point of contact for credit inquiries. Although an inquiry is theoretically free of charge, it is usually charged at up to 35 euros. This is quite annoying, especially if you want to obtain your own credit report, for example for a rental contract. However, there are alternatives. These are free of charge, but are not necessarily recognized in the same way. These are the most common alternatives:
- Creditreform
- Boniversum
- Infoscore
- CRIFBuRGEL
Insurers are well acquainted with these alternatives. You can use without hesitation. Private individuals, e.g. landlords, can, however, request an original SCHUFA report if they are not aware of these alternative providers.
How does a car insurance works despite SCHUFA?
Basically: a negative SCHUFA entry is NOT a reason to refuse you an insurance for a motor vehicle. The opposite is true: every car insurance company is legally obliged to offer you a contract – even if you have a negative SCHUFA entry. However, there are some things to consider. Not every car can be insured to the full extent and for every type of use. The insurance coverage is limited to the minimum of the liability insurance with most providers. use consumer portals like kfz-versicherung-trotz-schufa.Com to take out car insurance despite SCHUFA.
How to find the best motor vehicle insurance despite negative SCHUFA
You now know that you can insure your vehicle with any provider of liability insurance for your vehicle. This means you are free to choose the type of insurance you want. You only need to enter your personal details on a common comparison portal to make a pre-selection. For further details, please contact the customer service department.
What restrictions are there on car insurance with negative SCHUFA? ?
A car insurance restricts the access to a contract with negative SCHUFA in the following way:
-
Insurance formif you have a negative SCHUFA, you will usually only be offered a liability contract. This is the legal minimum insurance. it ensures that damages caused by your car are covered.
What is the legal obligation?
A vehicle must be insured in its third party liability. Third party liability covers all damages to third parties caused by the use of the vehicle. This ranges from light sheet metal damage to personal injury or property damage to buildings, etc.. Any vehicle that can be registered can be insured. It must have a valid vehicle registration certificate and a passed HU, then nothing stands in the way of an insurance. Conversely, insurers are obliged to accept any vehicle that is eligible for registration. You may not refuse to insure a vehicle with a valid vehicle registration document and a passed general inspection. However, they do have some leeway when it comes to the type of insurance they offer. In addition to the reduction of the insurance to pure liability, it is above all the sums covered that are variable. They can be significantly lower. Here is our advice: always conclude the coverage amount higher than suggested.
Reasons for refusal for insurers
The insurer may not refuse the car as long as it is eligible for registration. However, the insurance may be denied if the holder excludes a recording.
- The owner does not have a valid driver’s license
- The owner had several claims in a short time
- The holder has had to take an oath of disclosure and has a wage garnishment in place
If one of these cases applies to you, you will have to look for other ways to get a car.
Without a driver’s license nothing works at all. even if you want to insure the vehicle through a friend or relative – you will get yourself and your friend into big legal trouble! They both face up to a year in jail in this case!
If you have a driver’s license but have received a notice of cancellation due to several claims, be sure to work on your driving record. You can still insure a vehicle through a friend or relative. But you should not cause any further damage. A driving safety training course can help you to remain accident-free in the long term.
Even if your wages are garnished, you can still insure your vehicle through a friend or relative. Sometimes this is the only way to stay mobile.
Change car insurance despite SCHUFA – what to consider
Is it possible to have car insurance without SCHUFA?? However, the new insurance company, just like the existing one, will ask for a SCHUFA report. Therefore, you better make sure you have an optimized score before you want to change insurers. This saves you from rejection or excessive rates.