Author: Clifford F. Berman
Source: ezinearticles.com
There are lots of things in life that can kill your credit score. Slipping behind on your bills. Losing track of your credit card statements (or just plain losing them!). Applying for too many loans, opening too many credit accounts. You’ve heard the spiel. You know the story. But do you know how much damage your car insurance coverage (or lack thereof) can do to that all important three digit number?
If you’re sick and tired of reading about your credit score, what’s wrong with your credit score and ways to improve your credit score, it’s all good. You’re certainly not the only one. It seems like you can’t even turn around these days without practically tripping over it. You need good credit to get a loan, a house, a job, a car. Before too much longer you’re going to need to flash your credit score before you’ll be able to walk into today’s upscale boutiques! Credit’s important, and it’s up to you to take care of it.
Once upon a time drivers would find the nearest car insurance companies, choose two or three, talk to an agent, find out which one would cut them the best insurance rates and stay with that company for the rest of their lives. While there’s something to be said about company loyalty (and long term customer discounts) there’s something to be said about basking in the light of the benefits and goodies that today’s insurance companies are using to lure in new drivers and expand their clientele.
Let’s face it. If you’re sticking with the same car insurance company, you’re probably paying too much. Every car insurance company has its own policies when it comes to discounts, coverage levels, etc., etc. There’s no such thing as one size fits all car insurance, and it’s up to you to find the one that’s right for you. Make sure you’re doing it the right way, however, or the damage to your checkbook, your credit score and your financial future could be more than you can bear.
Did you know that every time your car insurance policy cancels for a non-payment of your premiums, your insurance provider reports it to the proper authorities? In plain English, that means they’re going to run out and tell Experian, Equifax and TransUnion, the terrible trio in the world of credit reporting, all about it. Not paying your bills does bad, bad things to your credit score.
Then there’s the part where you suddenly become a high risk driver because they assume that you’re driving around uninsured. It really is a nasty state of affairs. It’s so much easier to just pick up the phone as soon as you find out you’re not really saving hundreds of dollars a year and let your current insurance provider know you need to cancel your policy and when. It’s only a phone call. You make them every day. And this one has a much longer lasting effect on your future than the pizza you ordered for dinner last night!
Swapping car insurance companies is good for your insurance rates, but if you’re going to play the game it’s important to make sure you’re playing it right. Otherwise, you’re going to find yourself playing the pawn in a desperate race to preserve your financial assets instead of sitting back and basking in the glory of the Bermuda vacation you’re going to take as soon as you find out how much you could be saving-and what else you can do with it!
Clifford F. Berman is the CEO of QuoteScout.com. Since its launch in 1996 the company has specialized in matching consumers requests for insurance quotes with multiple insurance quotes from both local agents and national insurance carriers. To learn more about car insurance and your credit score, visit them on the web at http://www.QuoteScout.com