Cheap California Car Insurance -- The Effect Of Your Credit History

The topic of interest in this article continues on my series on California car insurance savings. Here, I will call your attention to yet another factor that is used by most insurance companies to determine your risk level. This factor has a deep effect on your rates...

Your credit history is a factor you cannot afford to joke with. Those who are into commerce will readily agree with the logic behind this argument...

Few things show more about you than the way you handle your bills. If you pay your bills promptly most insurers will assume that you are financially stable and, therefore, a smaller risk.

Their argument is that they have noticed a pattern that suggests that people who have bad credit records are generally very unlikely to be good road users. They simply won't trust anyone who is careless with their bills to be careful when driving.

If you have a poor record, you've defaulted on your payments and that is bad news for insurance providers. It suggests that you may also default in premium payments or might even be declared bankrupt as a worst case scenario.

Who would pay the premiums of a bankrupt person? Well, that's not our focus. Its side effect on the premium you'll pay is our main concern here.

You will be made to pay more expensive rates since what you pay is a function of the risk an insurance company associates with you. You can see your premium increased by as much as 100% in some cases if you skipped a couple of payments on a credit card. Depending on how many times you miss payments, you might even lose your auto insurance policy.

Although you already know you should, try to maintain a very good credit record. It does affect your auto insurance rate.

You can even demand for cheaper rates for your excellent credit record. A client with a very good record is loved by anyone in business. Insurance companies are assured of one thing: You will not default.

Like we said, you can save some bucks because of your credit history. But how? I am glad you asked. Find as many California car insurance quotes sites as you can and get quotes from each of them. From the quotes given, compare to know the best offer. If you do this correctly you could save over $1000 depending on your record.

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