Trying to find the best car insurance for your needs can
be a challenging task. Certainly, you understand that your
driving record will have a direct impact on your ability
to obtain car insurance at favorable rates. However, there
are other factors that can play a roll in the type of car
insurance you will be able to obtain and the premiums you
will have to pay for that car insurance coverage. This article
is designed to help you explore different aspects of obtaining
car insurance and what can impact your ability to obtain
car insurance coverage at favorable premium rates.
It is no secret that if you have a bad credit report it
will always haunt you when you are trying to get a loan,
or any type of credit for that matter. What many people
donít know is that your credit report is also used to help
insurance companies to calculate the cost of a policy.
Credit reports and insurance claim histories are both used
to predict the likelihood of an accident occurring with
a policyholder, in order to come up with a credit score.
The lower the score the cheaper the insurance policies.
Credit scores are not the same thing as insurance scores;
the insurance company uses the statistics of other policyholders,
with similar credit histories to predict the likelihood
of an accident occurring, or a claim being made.
Even though credit reports are used in determining an insurance
policy, unlike banks or financial institutions a customer
will not be declined insurance on the basis of them having
a poor credit rating.