This one is still on the subject of making as much savings on your car insurance as possible. This article will focus on another factor that really affects the risk most insurance companies associate with insuring you. This in turn determines your rates…
Make sure you keep a good credit history. Those who are involved in commerce will readily agree with the logic behind this argument…
Few things say more about you than the way you handle your bills. If you have a very poor credit history, an insurance company will certainly see you as a higher risk than someone else of similar circumstances that has a good history.
Their argument is that they have noticed a pattern that suggests that those who have poor credit histories are generally very unlikely to be considerate road users. They simply won’t trust anyone who is careless with his/her bills to be less reckless while driving.
If you have a poor history, you’ve defaulted on your payments and that’s not good news for the insurance company. Come to think of it, such a person will likely default in his/her insurance payments.
Since you are a high risk to them, they increase your rates. If you miss two payments on your credit card, don’t be surprised if you see your insurance premium doubled. Defaulting in your credit card payments for a certain number of times can even result in termination of your insurance contract.
Although you already know you should, try to build a great credit history. It does affect your car insurance premium.
You can even ask around for discounts for your excellent credit history. A client with an excellent history is loved by anyone in business. Such persons are not likely to default on their premiums. Insurance companies know this and love them for it.
Do you have a great credit history? Get some savings for it. I know you’re itching to know how so here’s it: Ask your agent. If they do not give you any discount, tell them you’ll change to another insurer and see if their tune doesn’t change. You can also do it quite easily this way…
There are many sites out there that send you car insurance quotes once you complete their form. Locate as many of them as you can, get and compare quotes from each. From the various rates each returns, you’ll see who favors, not just you credit history, but your entire profile. If you do this well you could save over $1000 depending on your profile.
