What Affects Your Car Insurance Rates? Find Out!

  Why People Switch Car Insurance There are plenty of reasons why you might consider switching car insurance. Sometimes, it's about cost. If your premiums keep creeping up or you've found a more competitive rate elsewhere, moving to a new insurer can make financial sense. Other times, it's about coverage. Life changes like moving, buying a new car, or adding a teen driver to your policy can prompt a reassessment of what you need. In other cases, it's about service. If you've had a frustrating experience with claims processing or customer support, it's natural to look for an insurer that treats you better. Timing Is Everything You don't want to cancel your current policy prematurely, as this could leave you with a lapse in coverage. Even a brief gap can lead to fines or higher premiums down the line. The best time to switch is when your existing policy is about to renew. Insurers typically send renewal notices a month before your policy term ends, giv...

  What Is a Credit-Based Insurance Score? Let's start by breaking down what a credit-based insurance score actually is. While it's similar to the credit score used by lenders , it's calculated slightly differently. Insurers aren't necessarily interested in whether you've maxed out a credit card.  Instead, they use this score to gauge your likelihood of making timely premium payments and filing claims. A strong credit score indicates financial responsibility; which insurers often correlate with lower risk. Meanwhile, a low score can signal potential red flags, such as financial instability, that may increase the chances of a policyholder missing payments or lapsing on coverage. The Link Between Credit Scores and Life Insurance Why do life insurance companies care about your credit score? On the surface, it might seem unrelated to your health or life expectancy. However, insurers operate on probabilities, and credit scores have proven to be surprisingly predictive ...