Facts to Consider When Getting an Insurance Quote in San Jose

by | Feb 16, 2016 | Insurance

Understanding basic auto insurance concepts can be difficult, but it’s even harder to understand the intricacies of procedures, policies and guidelines. In this article is an outline of some of the most vital but obscure insurance facts. Learning these facts can help customers make informed decisions when getting an Insurance Quote in San Jose.

Credit Score Affects Insurance Rates

A person’s credit score can determine the rate they pay for auto insurance from Coastautoinsurance.com. Providers have discovered that individuals’ credit characteristics are a reliable predictor of a person’s likelihood of filing an insurance claim. The characteristics used by insurance companies are different from those used by banks to make lending decisions, but insurers use a credit-based score to assess claims risk. Variables can include driving records, claims history, state of residence, age and the type of car one owns. Drivers should do everything they can to improve their credit, in order to save on auto insurance.

Brand Loyalty Can Be Expensive

Those who don’t comparison shop can end up paying too much for auto insurance. In the past, insurers only considered a few factors when calculating a driver’s premium; today, the list is much longer and more complex. Instead of renewing the policy automatically, drivers should get Ian insurance Quote in San Jose once per year to ensure that they’re getting the best rates.

Stopping Payment Can be Costly

Switching auto insurance policies isn’t as simple as failing to pay the monthly premium. The policy will be cancelled, but the insurer may report the driver to the credit bureaus, and the person’s history will reflect the cancellation. A person with prior cancellations will likely pay higher premiums, or be denied coverage altogether. Customers should fill out the requisite paperwork with their current insurer, and start the new policy on the day the old one expires.

Insurers can Decline Renewal or Cancel a Policy at Any Time

An insurance company can cancel a customer’s policy if they violate the guidelines. Failing to make timely payments, getting a suspended or a revoked license, having too many claims or misrepresenting claims history can all be valid reasons for non-renewal or cancellation. The carrier must notify the customer in writing, stating the reason for cancellation.

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