Affordable California Car Insurance -- Does My Credit History Affect It?

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

Do your best to maintain an excellent credit record. The logic of this thinking is so clear to those who have business dealings with people...

Your credit history tells much about you. If you pay your bills promptly most insurers will take it to mean that you are a responsible person and, therefore, a lower risk.

Here's their thinking: Those who give attention to their bills in a timely manner are also more likely to be more thoughtful in other aspects of their lives -- including driving. They feel that "irresponsible" behavior towards financial obligations almost always means general irresponsibility -- Even while driving.

If you have a bad history, you have neglected your payments and that's not good news for insurance providers. Come to think of it, such a person will likely neglect his/her insurance payments. And let's remember that such are usually early signs of bankruptcy.

What will an insurance company do if a client goes bankrupt? Well, that is not the issue here. The issue is how this will affect what you pay on insurance.

Since you are a high risk to them, they raise your rates. Some insurers may double your premium if you miss two payments 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.

So, help yourself, do all within your power to keep an excellent credit history (As if you did not know you should).

An excellent credit record is a basis for getting savings. Take it or leave it: Everyone likes doing business with folks who have a great credit record. They are very unlikely to miss payment on their insurance rates.

Like we said, you can save some bucks because of your credit history. But how? I am glad you asked. There are many sites online that send you California auto insurance quotes once you fill their form. Locate as many of them as you can and get quotes from all. From the quotes given, compare to see the most cost-effective offer. You can save over $1000 sometimes just by doing this correctly.

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