Top Surprising Reasons To Have Really Expensive Car Insurance Premiums
Compare-autoinsurance.org has released a new blog post that explains 3 surprising reasons why some people pay really expensive car insurance premiums.
There are huge discrepancies between car insurance costs, based on the risk group one person may be placed. While it makes sense to have the costs influenced by driving experience, age, driving history, and car model, some factors may be quite surprising.
For more info about this topic, check https://compare-autoinsurance.org/why-does-my-car-insurance-cost-a-fortune/
- Bad credit score. At first glance, a person's creditworthiness should not affect how much he or she pays for car insurance. Under the FICO credit system, a person has a poor score if the score is below 580. A person with a bad repayment history is considered high-risk for insurance companies. That person is more likely to miss payments or drop coverage mid-term. Creating car insurance lapses will negatively impact the insurability score. If possible, improve the credit score using one-time payments, keeping a low credit utilization rate and balance transfer credit cards. Always talk with an expert about this delicate matter.
- Small or inexistent loyalty bonuses. Loyalty should be a top focus for many companies. Many companies offer really tempting incentives to their safe drivers, in order to keep them loyal. These come usually under the form of a generous discount. However, there are companies that offer really small discounts or they do not offer at all. In this case, staying with the same carrier will damage the policyholder's budget in the long term.
- Price optimization. This is another prime example when loyalty hurts the policyholder's finances. Some companies practice this so-called "price optimization". They gradually increase a policyholder's premium upon renewal because that person is less likely to check the insurance market and switch carriers.