Don't Let These 3 Negative Factors Affect Your Car Insurance Rates
When dealing with a preferred carrier, keep in mind that a soft hit on your credit is always run to find out what rating tier you will be in. Most carriers have different tiers that they place you in based on your credit. Of course the better your credit the better your rate.
A lot of people ask why credit is used. Insurance carriers have determined through past performance that people with better credit file fewer claims, maintain their vehicles better and have fewer no payments for reinstatements. The reinstatement factor by itself causes about 20-25% additional work flow for the insurance carrier so most carriers will only allow a few reinstatements before they cancel you altogether.
High performance vehicles are another factor in determining if you are eligible for a carriers preferred or standard company. Most carriers offer several tiers for placing risks and a high performance vehicle will sometimes place you in the standard company. This is not with every carrier so if your rate seems extremely high you may need to shop around for a carrier that doesn't penalize you for this.
A third factor that can greatly impact your car premiums deals with major violations. Some preferred carriers will place you into their standard tier if you have more than one major infraction like a major speed. As a recommendation, always attend an insurance school to erase this from your driving record so it doesn't impact your car rates.
I hope this information has been useful.
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