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

The subject of interest in this article continues on my series on California auto insurance savings. Here, I'll bring your attention to yet another thing that is used by most insurance companies to determine your risk level. It, therefore, affects what you pay...

Make sure you maintain a good credit history. 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 history, an insurance company will certainly take you as a bigger risk than someone else of similar profiles who has an excellent history.

Here's their thinking: Those who give attention to their bills in a timely manner are also more prone to be more thoughtful in other areas -- including driving. They simply won't trust anyone who is careless with his/her bills to be careful when driving.

If you have a bad history, you've neglected your payments and that's not good news for insurance providers. It means you may also default in premium payments or might even be declared bankrupt as a worst case scenario.

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

The insurance company simply increases your premiums since you are a higher risk to them. Some insurers may double your premium if you miss two payments on a credit card. Depending on how many times you miss payments, you may even lose your auto insurance policy.

Since it now also affects your auto insurance premium thus affecting your total expenditure, try to have a great credit history.

You can even ask around for low rates for your excellent credit history. If you are in business, you will prefer to have customer with a great credit record. Insurance companies know that they are guaranteed something: You will not default.

I have told you that your credit history can help you make some savings. But how? I am glad you asked. There are many sites out there that send you California car insurance quotes once you complete their form. Locate as many of them as you can and get quotes from all. Thereafter, check all of them and pick the best quote. If you do this correctly you could save over $1000 depending on your record.

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