|
AUTO INSURANCE 101
MY CREDIT AFFECTS MY INSURANCE RATE
Sad but TRUE.
Why you ask? Well, insurance companies love to compile data. These statistics are based on several categories: your zip code and the risks involved driving there (are there are a lot of comprehensive claims, etc) , the likelihood of getting into accidents in your age group, and yes your credit -- the better your credit the better your rate. This is just to name some of the criteria.
ONE SPEEDING TICKET WILL RAISE MY RATES
True and False.
But mostly false. Generally speaking your rate won’t change if you get one speeding ticket. If you’ve had a more than one in less than a year –then that may be another story. Combine this with any credit issues and you may find your rate going up upon renewal.
I’VE BEEN WITH MY CURRENT INSURANCE CARRIER FOREVER – NO ONE CAN TOUCH MY RATE
FALSE!
Don’t count on this. If you’re credit or driving history has changed over the years in any way – your rate will shift as well – but it may be so subtle so that you hardly even notice. Compounded with years of ignoring your policy you could be paying more than you have to. By checking other companies out periodically opens the doors for some helpful advice that you may have been missing. (For instance – why are you still carrying comprehensive and collision on your ten-year old car? etc.)
ANYONE WHO DRIVES MY CAR IS COVERED – AS LONG AS I GAVE THEM PERMISSION
TRUE!
The general rule of thumb is the insurance follows the car. Your car – your insurance.
|
