When an auto insurance company denies someone coverage due to bad credit history the Fair Credit Reporting Act allows the person to obtain a free copy of their credit report. The federal Fair Credit Reporting Act (FCRA), "promotes the accuracy and privacy of information in the files of the nation's consumer reporting companies." By obtaining a copy of the credit report used to deny coverage for credit based car insurance, the person can verify the information contained in the report.

Find the negative items on the report that caused the bad credit score. If negative marks happened because of temporary unemployment contact the companies that placed the marks and explain the situation to see if they will remove the negative comments from the report. Repairing your credit to qualify for credit based car insurance seems like an overwhelming task. By investigating each item an individual slowly builds their credit back by tackling negative items one at a time.

To repair negative marks contact credit card companies, banks, utility companies, or other companies that placed marks on the report. People who start a conversation with the company find that by simply bringing the account current and asking the company to remove the negative marks, most companies will consider removing the unfavorable information.