Cheaper California Car Insurance -- How You Can Enjoy Massive Savings --Credit History

The subject of interest in this article is still on my series on California car insurance savings. I'll take a look into a factor that is becoming much more important to insurance companies in determining what an individual's risk level is. It, therefore, affects what you pay...

Your credit record is a factor you must not joke with. Those who are into commerce will readily agree with the logic behind this argument...

The way you handle your bills certainly is an indicator of your values. If you have a very bad credit record, an insurer will certainly take you as a higher risk than someone else of similar profiles who has a good record.

Their argument is that they have noticed a pattern that suggests that those who have poor credit records are generally very unlikely to be good road users. They feel that a poor attitudes towards financial obligations almost always means general irresponsibility -- Even when driving.

Insurers are in business to make money too and certainly would not cherish a person who has a poor credit record. Come to think of it, such a person will likely default in his/her insurance premium. And let us remember that such are usually early signs of bankruptcy.

What will an insurance company do if a client goes bankrupt? That is not our main thrust here. The issue is how this will affect what you pay on insurance.

Since you are a high risk to them, they inflate your rates. If you neglect two payments on your credit card, do not be shocked if you see your insurance rate doubled. You might even lose you car insurance policy if you default in payments on many occassions.

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

A very good credit history is a basis for getting discounts. If you do business, you will prefer to have customer with a great credit record. Such persons are not likely to default on their rates. Insurance companies know this and love such people for it.

I have told you that your credit history can help you get some savings. If you doubt it, here is the main step in the process: Get as many quotes as you can from as many California car insurance quotes sites as make sense. From the various rate quotes each gives, you will see who favors, not just you credit history, but your general profile. This is extremely important as it can bring savings of over $1000 in some cases.

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