Your Insurance Premiums Can Depend On Your History
Getting a quote for car or truck Insurance is easy but there is a little known hidden fact about the premiums when you get the quote for your Insurance agent. Premiums are pre determined on the basis of your previous Insurance history and if it is your first policy or if it is your brand new policy ,the percentage offered by the Insurance companies is usually greater than a having a strong history of previous Insurance coverage.
This may seem arbitrary and unfair, but remember, you're asking them, up front and knowing nothing about you, to agree to pay the costs of any traffic accident you have! Once you prove to them that you are trustworthy and reliable, a safe driver who promptly pays the premiums, they'll be eager to keep you as a customer, and they'll offer you a significantly better deal.
Persons having previous lapsed policies, and are in need to find a new one with better quotes are generally not entertained. Even if it happens, the credit history is checked for timely payment of premiums for the previous policy, so that the new company has some points for consideration.
Though you can find brokers offering high risk insurance covers at best rates for persons with a new driving license, or for a person with lots of traffic violations or accident claims, the fact is ,the initial payment and the deducted amount will compensate the rate offered ,finally summing up for a poor insurance coverage.
Those seeking the best rates are advised to continue paying their current policies throughout the originally prescribed term rather than cancelling them before they are due to expire. Shorter term policies may then be the way to bolster one's history. Doing so, in addition to maintaining a clean driving record, will improve the likelihood that the applicant will receive lower premiums in the future. In order to take advantage of their new "safe" status, drivers should solicit quotes from other insurance policies when they receive a renewal notice from their current provider. Even a brief, six-month period of consistent payments and safe driving can result in significant premium savings - to the tune of several hundred dollars potentially.
It never hurts to shop around for a better rate at policy renewal time. Your current insurance company would be happy to keep you on at last year's higher rate. It's up to you to have them review your policy. If you change jobs or change your address, you may have a shorter and/or safer drive to work. Changes like these can make you eligible for lower premiums, so review your policy when they happen. Now that you have a good history, other insurers will want your business, and they'll offer you lower rates to get it. Your current insurer, remember, will want to keep you, so they'll also make you a better offer.
Be street smart. Make sure you go around and hunt to get the best quotes from the Insurance companies which are ready to offer you their services before selecting your Insurance policies. Think twice before getting committed to a policy. A little amount of good behavior such as not allowing the policy to lapse, clean driving record or prompt payment of premiums on time can reward you with higher rates and get a better deal the next time you start hunting for the best cover. - 2368
This may seem arbitrary and unfair, but remember, you're asking them, up front and knowing nothing about you, to agree to pay the costs of any traffic accident you have! Once you prove to them that you are trustworthy and reliable, a safe driver who promptly pays the premiums, they'll be eager to keep you as a customer, and they'll offer you a significantly better deal.
Persons having previous lapsed policies, and are in need to find a new one with better quotes are generally not entertained. Even if it happens, the credit history is checked for timely payment of premiums for the previous policy, so that the new company has some points for consideration.
Though you can find brokers offering high risk insurance covers at best rates for persons with a new driving license, or for a person with lots of traffic violations or accident claims, the fact is ,the initial payment and the deducted amount will compensate the rate offered ,finally summing up for a poor insurance coverage.
Those seeking the best rates are advised to continue paying their current policies throughout the originally prescribed term rather than cancelling them before they are due to expire. Shorter term policies may then be the way to bolster one's history. Doing so, in addition to maintaining a clean driving record, will improve the likelihood that the applicant will receive lower premiums in the future. In order to take advantage of their new "safe" status, drivers should solicit quotes from other insurance policies when they receive a renewal notice from their current provider. Even a brief, six-month period of consistent payments and safe driving can result in significant premium savings - to the tune of several hundred dollars potentially.
It never hurts to shop around for a better rate at policy renewal time. Your current insurance company would be happy to keep you on at last year's higher rate. It's up to you to have them review your policy. If you change jobs or change your address, you may have a shorter and/or safer drive to work. Changes like these can make you eligible for lower premiums, so review your policy when they happen. Now that you have a good history, other insurers will want your business, and they'll offer you lower rates to get it. Your current insurer, remember, will want to keep you, so they'll also make you a better offer.
Be street smart. Make sure you go around and hunt to get the best quotes from the Insurance companies which are ready to offer you their services before selecting your Insurance policies. Think twice before getting committed to a policy. A little amount of good behavior such as not allowing the policy to lapse, clean driving record or prompt payment of premiums on time can reward you with higher rates and get a better deal the next time you start hunting for the best cover. - 2368
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal, which helps people save on their car insurance.
posted by Frank Potter at 10:01 AM
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