Bad credit risk, bad driver?
This is a good year for drivers in California. Way back when in 1988, Proposition 103 received more than enough support from voters to pass. Three years ago, the Commissioner for Insurance introduced new rules prohibiting the use of ZIP codes as the primary factor for determining car insurance rates.
These rules came into force July 14. The first step in setting the auto insurance rate is whether you qualify for any discounts. For example, most companies offer discounts if you can pay an annual premium rather than by monthly or half-yearly installments. Then comes the math work. There are statistical methods to determine the risk of you getting in an accident. If you’re a late payer who gets into trouble with liens and mortgages on your property, if you rent rather than own, you may not take as much care of your property as others. So, before you go online for your next car insurance quotes, check out your credit score and, if necessary, repair the score. The Fair Credit Reporting Act gives you the right to get free copies of your credit reports. Use that right and get your credit score into shape before getting quotes.
