Insurance History and Premiums-Cause and Effects
Not all people know that their insurance premiums are partly determined by their insurance history. The lack of a current insurance policy or a substantial history of insurance can result in a higher premium when soliciting new coverage. Conversely, continuous coverage can result in receiving lower quotes from other insurance companies when you decide to get more quotes versus just renewing your old policy.
It may occur that the price you have to pay for the new policy is higher than for the ones who have previous insurance policies, but then, things like no previous claims, apt and regular payment record, a clean driving license will be considered as plus points and there is a chance the rates offered to you are great.
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.
If you are a new driver, if you have a string of traffic tickets, if you have had traffic accidents, if you have submitted _insurance claims_ for accidents, if you’ve let policies lapse due to non-payment… any (or, you poor sap, _all_) of these things make you a high-risk customer. You can still find insurance, but you will definitely pay a price. You’ll have a higher down payment, higher premiums, a higher deductible, and generally less coverage.
So once you have started a policy, be sure to complete it. If you want to establish yourself as a desirable customer, purchase a policy for six months. Drive carefully, _don’t_ get any tickets, and make your payments regularly and promptly. When it’s time to renew, get out the phone book and start checking other brokers. Now that you have a good insurance history, other insurers will be eager for your business. Your original insurer will be reluctant to lose you, and will most likely match any quote you get from another company. Your next six months could end up costing you hundreds of dollars less than your first.
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.
