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

The subject of interest in this article continues on my series on California car insurance savings. Here, I'll call your focus to yet another thing that is used by most insurance companies to determine your risk level. It, therefore, affects your costs...

Make sure you keep a good credit record. If you have anything to do with people and marketing you'll understand why this is an increasingly important factor with a growing number of insurance companies...

Your credit history shows much about you. If you have a very bad credit history, an insurer will certainly take you as a higher risk than another of similar circumstances who has an excellent record.

Here is what they think: Those who pay their bills in a timely manner are also more prone to be more thoughtful in other areas -- including driving. For them a pattern of carelessness with personal bills suggests general irresponsibility which is also carried on behind wheels.

An insurance company is in business to make money too and certainly would not value a person who has a bad credit history. 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? That is a subject for another discourse. Its side effect on the premium you will pay is our main focus here.

Since you are a high risk to them, they raise your rates. Some insurance companies may double your rate if you default twice 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 didn't know you should).

A very good credit history is a basis for getting discounts. A client with a very good record is loved by anyone in business. Insurance companies know that they are guaranteed something: You'll not default.

Do you have a great credit history? Make some savings for it. But how? I'm glad you asked. There are many sites out there that send you California auto insurance quotes once you fill their form. Locate as many of them as you can and get quotes from each. Thereafter, check each of them and select the best quote. This is very important as it can result in savings of over $1000 in some cases.

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