Few of us quite understand why car insurance premiums are as high as they are.Even if you have been a safe driver all your life, have never had a ticket, and drive a sensible car, you may be paying a huge amount of money and it just doesn't seem fair.Auto insurance ratings are what determines your premium rate, and some of the information that is included is in these ratings might surprise you.The first and most obvious part of determining auto insurance ratings is a person's driving record.Put bluntly, if you are a bad driver, you pay more for car insurance, and few of us would argue that point.But, there are some people who have always been safe drivers and have never made a claim against their car insurance company and their insurance premium keeps going up every six months.Auto insurance ratings are also determined not only by how you drive, but by how you live.If you are a smoker, you may pay more.If you don't have a job, if you don't have a garage to store your car, and you live on the wrong side of town, then you will pay more, too.One aspect of the ratings process that surprises many people is that your credit score is terribly important in determining your premium.A person with a credit score lower than 600 can pay almost twice as much for their car insurance as someone with "perfect" credit.The good news is that by shopping around for car insurance now online, even if your current insurance policy isn't up for renewal yet, you should be able to find a good insurance company that offers you the same levels of coverage at a much better price than you are currently paying.
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