Cheaper California Car Insurance -- Does Your Credit History Affect It?

California auto insurance savings has been a topic of interest to me for some time now. I will take a look into an aspect that is becoming increasingly important to insurance companies in determining what an individual's risk level is. This in turn affects your rates...

Ensure that you keep a good credit history. If you have something to do with people and marketing you will understand why this is an increasingly important factor with a growing number of insurers...

How you handle your bills certainly shows your values. If you pay your bills promptly most insurance companies will take it to mean that you are a responsible person and, therefore, a smaller risk.

Here is their thinking: Those who pay their bills in a timely manner are also more prone to be more responsible in other areas -- including driving. They simply won't trust anyone who is careless with their bills to be careful when driving.

If you have a poor record, you've neglected your payments and that is bad news for any insurance company. Come to think of it, such a person will likely neglect his/her insurance payments. And let's not forget that such are usually early signs of bankruptcy.

What will an insurance company do if a client goes bankrupt? Well, that is not our focus. Our focus is how it will affect your premium.

Since you are a high risk to them, they inflate your rates. You can see your premium doubled in some cases if you miss a couple of 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.

Although you already know you should, try to maintain a very good credit history. It does affect your car insurance premium.

You can even demand for cheaper rates for your great credit history. Take it or leave it: Everybody likes doing business with folks who have an excellent credit history. Insurance companies know that they are guaranteed something: You'll always pay.

Do you have an excellent credit record? Get some savings for it. But how? I'm glad you asked. Get as many quotes as possible from as many California auto insurance quotes sites as make sense. From the quotes returned, compare to see the most cost-effective offer. If you do this well you could save over $1000 depending on your profile.

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