Cheap California Car Insurance -- Does My Credit History Matter?

This one is still on the subject of generating as much savings on your California car insurance as possible. I will take a look into a factor that is becoming increasingly important to insurance companies in determining what an individual's risk level is. This factor has a deep effect on your rates...

Your credit history is a factor you cannot afford to joke with. The logic of this thinking is really very apparent to those who have business dealings with people...

The way you handle your bills certainly shows your values. An insurance carrier will conclude that you are more responsible and a smaller risk if the records show that you pay your bills promptly.

Their argument is that they have observed a pattern that shows that people who have poor credit histories are generally very unlikely to be good road users. They feel that a wrong attitudes towards financial responsibilities almost always means general irresponsibility -- Even when driving.

If you have a bad record, you've defaulted on your payments and that's not good news for any insurance company. Come to think of it, such a person will likely default in his/her insurance premium. And let us not forget that such are usually early signs of bankruptcy.

So what do you think will happen to your insurers in such a case? That is not our main thrust here. Our focus is how it will influence your premium.

Since you are a high risk to them, they raise your rates. If you neglect two payments on your credit card, don't be surprised if you see your insurance premium doubled. 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 build a great credit record. It does affect your car insurance premium.

A good credit history can attract savings that would be impossible otherwise. Take it or leave it: Everyone likes doing business with folks who have a great credit history. They are very unlikely to miss payment on their insurance premium.

Do you have an excellent credit history? Get some savings for it. If you doubt it, here is the main step in the process: Get as many quotes as you can from as many California auto insurance quotes sites as make sense. From the various rate quotes each gives, you'll know which favors, not just you credit history, but your entire profile. You can make savings of over $1000 sometimes just by doing this correctly.

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