Examining How Your Credit Can Affect Your Insurance Coverage

ByDarren Kutcher

In the past decade, more insurance companies have started using your credit history to help determine the risk you pose. While you might wonder how credit scores can possibly have anything to do with your driving skills, you might be surprised to know that it does tell companies a lot about you.

Your insurance company uses several factors to determine how much your premiums will be. Most drivers know their driving record is used. You may know already that where you live plays a part in the determination of your premiums. However, the reason a credit score is in the mix is due to it showing how responsible you are.

The responsibilities credit history tells about you is whether or not you would be likely to file claims. Your credit score is also used to decide whether you will pay your premiums on time. Most companies also use an insurance history report to see if you have filed several claims in the past. The more claims you may have made, the higher risk you pose to a new company.

You may be denied coverage from some companies due to your current credit score. If you are denied, you can request a copy of an up to date credit report for learning the reasons you were denied. You are entitled to one free report every year. Sometimes the smallest issue in your report can cause you big troubles.

Saving money these days is necessary more than ever. By working to improve your current score, you can qualify for greater coverage for smaller premiums. Some companies do offer better rates than others. However, you can not know the real difference until your credit is no longer an issue.

Talking to a financial professional about the ways to improve your score can help. The trained professional can help you to the parts of your report that need to be concentrated on the most. You might talk to your bank or other financial institution about all the steps you can take for credit repair. Drivers are required by law to carry insurance, so working to get it as cheap as possible is certainly worth your time.

You have several options for getting your premiums lowered. Taking care to keep good credit in one of those ways. Maintain a clean driving record and always make your premium payments on time for making sure you are getting the lowest rates. Your agent can help you to make the right decisions about changes and improvements.

Motor vehicle owners, you will get details about Maryland auto insurance requirements and cheap ins tips on our site, right now.

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Insurance: Car-Auto
Darren Kutcher

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchRecent Articles17 Year Old Driver InsuranceEssential Things To Note Whenever You Make A Motor Insurance Coverage ClaimWhy Modern Automobile Makers Are Rediscovering ColorImportant Information About Car Accidents And Your Insurance CoverageShopping for a New Car? Consider the Insurance Cost Before BuyingHow to Change to a New Car Insurance CompanyCompetitive Performance and Modified Car InsuranceAuto Accidents - What to Do If You Hit a DeerEight Simple Ways to Reduce the Cost of Car Insurance for Young DriversTips For Making Best Choices For Insurance RenewalSubmitted On March 16, 2012. Viewed 2 times. Word count: 418.

MLA Style Citation:
Kutcher, Darren".".16 Mar. 2012EzineArticles.com.17 Mar. 2012 .APA Style Citation:
Kutcher, D. (2012, March 16). . Retrieved March 17, 2012, from http://ezinearticles.com/?Examining-­How-­Your-­Credit-­Can-­Affect-­Your-­Insurance-­Coverage&id=6944692Chicago Style Citation:
Kutcher, Darren "." EzineArticles.com. http://ezinearticles.com/?Examining-­How-­Your-­Credit-­Can-­Affect-­Your-­Insurance-­Coverage&id=6944692EzineArticles.com© 2012 EzineArticles.com
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Does Credit Affect Insurance Rates?

ByMarilyn Katz

Poor credit And Car Insurance

It may not seem fair at all, but auto insurance companies are allowed to increase rates for their customers with credit problems. You could be a great driver, and you could drive a very safe car, but you might never qualify for the cheapest rates if you have poor credit.

Insurers have won the right to consider credit when they look at risk factors. They have demonstrated that people with worse credit tend to make more claims. Higher risk drivers get charged more. If insurers can use low credit scores as a risk factor, they can hand you a higher rate.

Poor credit can happen to great people. Some people have unexpected illnesses or layoffs, and they get behind on their bills. Obviously, when credit suffers, paying bills can be a challenge. That is why it probably seems unfair to get rate increases from car insurance companies at the worst possible time.

Home Policy Rates Can Be Affected Too!

Low credit scores can affect your auto insurance rates. In fact, it can also affect your homeowners insurance rates. Just when you have financial problems, it may seem pretty cruel to get dinged twice with more expensive car and home policy premiums!

Drivers With Bad Credit May Need To Shop Around

If your auto insurance rates have gone up because your credit score has declined, you may need to shop around. A lot of the top insurers do use credit as a risk factor, but not all of them weigh it the same. You need an insurer who will also consider your good driving history and other factors.

Just because you have had credit problems does not mean you will not be entitled to other discounts. Looking for deals should be a priority. When you have credit problems, you probably want to reduce all of your expenses so you can get yourself out of trouble.

If you also own a house, or even if you rent, you may be able to bundle your auto and home policies, with the same company, in order to get a discount. These multiple policy discounts are one of the most common ways to save money on premiums.

The auto insurance business is very competitive today. Because of this, your car insurance rates are also give you an opportunity to save money. If you do not like getting your premiums raised because of your credit problems, you have the right to shop around!

Do you need bad credit insurance? Visit us for more information about fighting premium increases. We would also like to help you fix bad credit as quickly as you can!

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Insurance: Car-Auto
Marilyn Katz

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesHow to Ensure That You Get Favorable Auto Insurance RatesMoney Problems Created by Credit #4 - Auto Loans and ConcernsA Few of Our Favorite Things (That Can Lower Homeowners Insurance Rates)How to Get Bad Credit Auto LoansPoor Credit And Auto Insurance - A Single Effective Method To Saving MoneyTexas Ranks Above Average on National Credit ScoresGetting the Best Cheap Auto Insurance - Car Insurance TipsHome Buyers: Improve Your Credit ScoreFix Credit Rating Hassles With These Simple Tips!Games the Auto Dealer Wants to PlayRecent ArticlesWhat You Need To Do To Obtain Cheap Car InsuranceReasons Why Men Are Better Drivers Than WomenHow Little Lies Can Cost You DearlyChoosing A Car Insurance Company To Insure Your Car WithFacts On Cheap Young Driver Car InsuranceThe Benefits Of Online Comparison Shopping For Your InsuranceInformation About Connecticut Car InsuranceSave Money by Comparing Cheap Car Insurance Quotes OnlineWhen Was Car Insurance Invented and Why?Having Your Car Protected In Spite Of Terrible Claim HistorySubmitted On March 13, 2012. Viewed 2 times. Word count: 412.

MLA Style Citation:
Katz, Marilyn".".13 Mar. 2012EzineArticles.com.14 Mar. 2012 .APA Style Citation:
Katz, M. (2012, March 13). . Retrieved March 14, 2012, from http://ezinearticles.com/?Does-­Credit-­Affect-­Insurance-­Rates?&id=6937243Chicago Style Citation:
Katz, Marilyn "." EzineArticles.com. http://ezinearticles.com/?Does-­Credit-­Affect-­Insurance-­Rates?&id=6937243EzineArticles.com© 2012 EzineArticles.com
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Factors That Affect Insurance Premiums

ByCole Sileven

Certain characteristics will cause you to be included in a group of drivers who present a greater risk than the average driver. Each such group is compiled based on how many claims were filed by individuals in that group. Insurance companies determine the rate based on the cost of those claims. There are things you can do to affect the group that you are placed in.

Make certain you maintain a spotless record. Those who have multiple accidents and tickets for moving violations will most often pay a much higher premium than drivers with clean records. If a driver is at fault in more than one accident in fewer than three years, or is convicted as the result of a DUI, the insurance company will usually raise the cost of the premiums significantly. They may also refuse to renew an insurance policy when it comes time for renewal. The policy can be immediately cancelled if you lose your driving privileges through suspension or revocation. Your poor driving record will do more damage if you are covered under your parents' automobile insurance. It will have a detrimental effect on their insurance and they may pay higher premiums as a result.
The type of car you drive will affect your premiums also. Some automobiles are more prone to damage in an accident. Some cost more for repairs, a luxury vehicle for example. Some are likely to be stolen more frequently than others. If you drive a high performance sports car, insurance rates will rise. If your car is deliberately "modified" to be a street machine, insurance may skyrocket.
Buy a car that has all the safety features. This includes vehicles with seatbelts that have the automatic release feature, anti-lock brakes and side as well as front airbags may lower the premium.
Your credit rating matters because you present yourself as a responsible, stable individual by paying bills on time. Premiums may go up for someone with a bad credit history.
Maintain a good grade point average if you are a student. Insurance companies may offer a discount to those who have a "B" average or higher.

These factors are just a few things you should keep in mind in order to save more on car insurance. Always avoid being categorized as a high risk driver. One single ticket or accident can increase your insurance cost for 3 to 5 years depending on who writes your policy. If you do get into an accident you should always consider shopping around since some companies are more lenient than others.

Comparison Insurance Quotes resource offers a way to comparison shop for car insurance from both National Carriers and local agents. Check out recently updates for insurance quotes Florida.

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Insurance: Car-Auto
Cole Sileven

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesAuto Insurance - What Factors Determine RatesFactors For a Low Rate InsuranceReview of Auto Insurance Risk FactorsHow to Find Car Insurance - Online Estimates and Rate ComparisonsCar Insurance Cost - What Type of Insurance Do You Need?Car Insurance Pricing FactorsLow Cost Car Insurance - Finding the Best Rate Just Got EasierAuto Insurance Premium FactorsCar Insurance - Unexpected Factors That Could Raise Your RatesCar Insurance - Getting the Lowest RateRecent ArticlesFacts Your Insurance Company Might Not Tell You AboutLearn How Teenagers Can Get Affordable Automobile InsuranceCan High Risk Drivers Get Affordable Insurance?Car Insurance Tips For The Modern DriverCar Insurance Quotes Come To FruitionHow to Get the Best Car InsuranceAcquiring a Car Insurance Quote Should Be an Informed ProcedureSomething About Automobile Collisions and Car InsuranceWhy You Can't Find Cheap Car InsuranceCar Insurance: A Guide to CoverageSubmitted On February 27, 2012. Viewed 3 times. Word count: 425.

MLA Style Citation:
Sileven, Cole".".27 Feb. 2012EzineArticles.com.28 Feb. 2012 .APA Style Citation:
Sileven, C. (2012, February 27). . Retrieved February 28, 2012, from http://ezinearticles.com/?Factors-­That-­Affect-­Insurance-­Premiums&id=6907387Chicago Style Citation:
Sileven, Cole "." EzineArticles.com. http://ezinearticles.com/?Factors-­That-­Affect-­Insurance-­Premiums&id=6907387EzineArticles.com© 2012 EzineArticles.com
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