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Keeping Your Auto Premium Rate Low Is Not Just About Being A Good Driver

Jun 28, 2008
Want lower auto Insurance premiums? Who doesn't, not everyone is aware that not only do you have to be a good driver, which means no moving violations or accidents and over the age of 25 but you have to also have good credit. Insurance companies of all types gauge your liability on your credit score. So if you think that the carefree way of living is not going to catch up to you somehow think again because Insurance companies for Auto as well as Home place significant weight on your credit history to determine your auto and home insurance premiums.

Like I mentioned, your credit score is not the only criteria placed on how an insurance company judges your liability as a driver on the road, your driving history itself is the real factor. Both coincide so make sure you stay on the right side of carefulness and being financially responsible. Don't let those unpaid debts go unpaid because the late ot delinquent status will affect you for years to come. Once you get that kind of status on your credit report it is there to follow you for 7 years.

Why does this happen? Or should I say will this happen to you? You have to put yourself in the shoes of an Insurer of any type. That company is financially liable for what accidents you impose. That is why it is called "liability" and Insurance companies are also businesses that need to protect themselves. When a person approaches an insurance company with that kind of credit report, an insurance company has no choice but to assume that you just might carry those bad and lazy habits today and fail to you're your insurance premium payments on time to them as well. You would be flagged as a risk and treated as such in terms of higher premiums.

Something as simple as having too many credit lines could affect you negatively. Don't over look the amount of times you applied for a credit cared either. That as well has a negative affect on your credit score. These and other factors could greatly influence the decision of an insurance provider on whether or not to underwrite you or quote you a rate that would be agreeable to you. It's important to the eyes of an insurance agent and company that you appear as responsible and careful as possible. That is the only way of keeping rates low.

If, on the other hand, you have a credit history with little or no bad records, then auto or home insurance companies would tend to look favorably on you and reward you with lower premiums, assuming, of course, that you do well on the other criteria that they use to determine premium rates. If you want to lower your premium rate then first, clean your credit right away. Pay your credit card on time every month, consolidate and get rid of the high interest debt, and seriously control your spending. If you're young and just starting off in life and if you don't have much credit history yet, get some.
About the Author
Did you know that rates can vary by hundreds of dollars from one insurance company to another? Get quotes & compare Cincinnati Auto Insurance , Nashville Auto Insurance as well as Cleveland Auto Insurance .
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