Save On Car Insurance – What You Have To Understand
Your credit history may affect your car insurance premium. Auto insurers believe that your credit score is an indicator of whether you are going to make a claim, and price your insurance policy accordingly. A July 2007 report from the FTC confirmed a correlation between one’s insurance score and the likelihood of filing a future insurance claim. Read the FTC’s report on “Credit-based Insurance Scores: Impacts on Consumers of Automobile Insurance.” Auto and home insurers also make ample use of “insurance risk scores,” which are similar to credit scores but weigh credit factors differently. Not all states are keen on insurance scoring as a factor in pricing car insurance policies. To see what your state says, see state laws on insurer use of credit information. What you can do: You can buy your own auto or home insurance score report through ChoiceTrust, which is operated by ChoicePoint, a provider of consumer insurance scores and other data to insurance companies.
Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.
Your risk profile is a direct result of your driving record. A clean driving record and you will be rewarded by cheaper rates. A poor driving record and you will be penalised, usually for quite a while.
Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.
When the rates being paid by you are high and your car insurance company shows no inclination to offer you a competitive rate. If you are paying too much for car insurance its time you changed your car insurance company to one that is offering you great facilities and rates.
Insurance prices vary (a lot) by company. You’ve probably seen commercials saying you can save money by switching to a certain car insurance company. How can so many companies make this claim? The reason is that “auto insurance is a highly competitive business and one of the most effective ways to reduce insurance costs is simply to shop around,” according to Jeanne Salvatore, senior vice president of the Insurance Information Institute. “Drivers should look for an insurance company that will provide a good price along with excellent service.” Prices for the same policy from the same company, however, are set by law. They are approved by the state and can’t be changed by an agent, so you can’t get a better price for the same policy simply by going to a different agent or trying to negotiate the price. The best plan is to decide what coverages and options you need and comparison shop to get the best price.
For your protection. Once you have selected the insurance coverages you need and an insurance agent or company, there are steps you can take to make certain you get your money’s worth. Before signing an application for any insurance coverage, call you state insurance department and verify that the company and the agent are licensed to do business in your state. It is illegal for unlicensed insurers to sell insurance, and if you buy from an unlicensed insurer, you have no guarantee that the coverage you pay for will ever be honored.
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