All your life people have been telling you that the best way to get good car insurance rates is to be a good driver. It sounds great in theory, but it is far from the truth. Even people with great driving records can get hammered with high car insurance premiums and it is often for reasons that they have created themselves. The important thing is to keep an eye on all of the elements that go into creating a low insurance premium and focus on reality, instead of relying in hearsay to get you great rates.
Your Credit Is A Problem
You can drive just fine, but you seem to have issues with paying your credit card bills and that is going to kill your ability to get a good insurance premium. According to FederalAutoLoan.com, a couple of the bigger insurance companies charge customers with bad credit double what they charge customers with good credit.
Is it fair? Well, nothing in life is fair, but this seems especially cruel for good drivers with bad credit. After all, your car insurance premium should be based on your ability to avoid making claims against your auto insurance and not how well you handle your finances. It can be frustrating when your inability to pay the Home Depot credit card bill on time costs you more for your car insurance.
Insurance companies do not look kindly on drivers who allow their insurance to lapse before getting into a new policy. How long is too long for allowing your insurance to lapse? According to Kiplinger.com, 45 days is a long enough lapse to cause some insurance companies to not even give you a quote, even if you have never had an accident in your life.
Your Job Isn’t Good Enough
This one is going to be hard to believe, but your job could dictate whether or not you get the best kind of car insurance. According to Forbes.com, a study was done where a single woman who worked as a receptionist and had no accidents was pitted against an executive with a family and an accident on her record. Many of the larger insurance carriers gave the receptionist higher rates than the executive and the executive’s accident was her fault.
Paying The Price For Your People
You may have never had an accident in your life, but if your age group has experienced an abnormally large amount of accidents over the past 12 months, then your rates are going up. CarsDirect.com says that insurance companies justify this increase by saying that they have to cover potential risks to be able to offer everyone coverage, but it just makes safe drivers wonder if paying attention while driving is even worth it.
You have never had a ticket and you have never even had so much as a fender bender in your life. By all rights, you should have the lowest car insurance premiums available, right? There are plenty of other factors that go into determining your insurance premiums and there is no guarantee that your great driving record is going to get you better rates than the person who has smacked into a telephone pole in the past year.
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