Maybe you’ve been insuring your cars for a long time and think you know everything about it. Maybe you have a longtime insurance agent you like and who has been guiding you for years. But maybe, there are some factors you’ve never considered, factors that may be costing you money. Here are a few:
- Bad credit affects car insurance rates. Statistics show that credit score is a good predictor of whether or not someone will file an insurance claim. Crazy, but true. So if both you and a friend get different California auto insurance quotes from http://california-insurance.net/california-auto-insurance-quotes/, that might be the reason
Of course, it’s not the only thing that helps insurance companies predict the likelihood of claim. Other factors are your driving record, where you live, average number miles you drive etc. But credit score is one of the most important, so before you apply, try to improve your credit to improve your rates.
- Did you know your insurance company can refuse to renew you or cancel your policy whenever they want? It’s true. If your license is suspended or revoked or if you don’t pay on time, your insurance company may just cancel your policy. So it pays to drive carefully and to pay on time.
- You don’t have a policy until after the “Binding” periods. That is, your insurance company tells you that coverage is in place—and it is—but you don’t yet have a policy. Usually, the first 60 days are considered a “binding” period, during which but keeps checking your driving record, your credit and they examine your application carefully. If anything is amiss, they can refuse to give you a policy.
- Automatic renewal does not always work in your favor. Sure, it’s convenient to just keep going with the same car insurance company, but you could be missing a chance to lower your rates. It’s smart to check your policy each year and get new quotes from a few other car insurance companies, just to be sure you are still getting the best rates. It’s even possible that your current company will reduce your rate if they know you are getting better rates from other carriers.
It pays to be informed when it comes to car insurance, and to know some of the things most people aren’t aware of. Getting the best California auto insurance quotes depends on it.