The subject of interest in this article continues on my series on California car insurance savings. This article will focus on another factor that really affects the risk most insurance companies associate with insuring you. This factor has a deep effect on your rates...
Do your best to maintain a very good credit record. Those who are involved in commerce will readily agree with the logic behind this argument...
Your credit history shows a lot about you. An insurance carrier will conclude that you are more responsible and a smaller risk if you pay your bills in a timely manner.
Here's their thinking: Those who give attention to their bills in a timely manner are also more likely to be more responsible in other areas -- including driving. For them a pattern of negligence with personal bills suggests general irresponsibility which is often carried on behind wheels.
Insurers are in business to make profit too and certainly wouldn't cherish a person who has a bad credit record. It suggests that you may also neglect premium payments or might even be declared bankrupt as a worst case scenario.
What will an insurance company do if a client goes bankrupt? That is a topic for another discourse. Its side effect on the premium you will pay is our main focus here.
The insurance company simply adds to your rate since you are a higher risk to them. Some insurance companies may double your rate if you default twice on a credit card. Defaulting in your credit card payments for a certain number of times can even lead to termination of your insurance contract.
Although you already know you should, try to maintain a great credit record. It does affect your auto insurance premium.
An excellent credit history can bring savings that would be impossible otherwise. A client with a very good record is loved by anyone in business. Such people are not likely to default on their premiums. Insurance companies know this and love such people for it.
Do you have an excellent credit history? Make some savings for it. I know you're eager to know how so here it is: There are many sites out there that send you California car insurance quotes once you fill their form. Find as many of them as you can and get quotes from all. From the quotes given, compare to know the best offer. If you do this properly you could save over $1000 depending on your record.
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