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

This one is still on the subject of making 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. It, therefore, affects your rate...

Your credit record is a factor you can't afford to joke with. Those who are involved in commerce will readily agree with the reasons behind this argument...

Your credit record tells a lot about you. An insurance carrier will assume that you are more responsible and a smaller risk if you pay your bills in a timely manner.

Here is 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. For them a pattern of negligence with personal bills means general irresponsibility which is also displayed behind wheels.

If you have a poor record, you have neglected your payments and that's bad news for insurance providers. It suggests that you may also default in premium payments or might even be declared bankrupt as a worst case scenario.

Who would pay the premiums of a bankrupt client? That is not a focus in this article. How it will affect the premium you'll pay is our main concern here.

You will be made to pay more expensive rates since what you pay is a function of the risk an insurance company associates with you. Some insurance companies may double your premium if you miss two payments on a credit card. Depending on how many times you default, you might even lose your car insurance policy.

Although you already know you should, try to maintain a great credit record. It does affect your auto insurance premium.

You can even demand for discounts for your excellent credit record. If you are in business, you will rather have a client with an excellent credit record. Such persons are not likely to miss payment on their rates. Insurance companies know this and love them for it.

I've told you that your credit history can help you get some savings. I know you're itching to know how so here it is: Get as many quotes as you can from as many California auto insurance quotes sites as make sense. From the various quotes each gives, you'll know which favors, not just you credit history, but your whole profile. This is extremely important as it can bring savings of over $1000 in some cases.

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