When it comes to the premium drivers pay on their car insurance, certain events can affect the amount they pay. Whether if those events affect their car insurance rates in a positive or negative way, drivers can find out by checking the car insurance market at least once every six months.
Drivers are recommended to check the online insurance market in the following situations:
- Driver's credit score changed. Insurance companies are allowed to take drivers credit score into consideration when determining their premium rates. Drivers with a good score will pay less, while drivers with bad credit score will pay more on their premium rates.
- State's laws have changed. The car insurance laws and the requirements are different in each state. These laws and requirements can change at any time, so it's important for the policyholders to be vigilant.
- Driver's has maintained coverage. If the policyholder is a new driver or a more experienced driver that has a coverage lapse, then the policyholder is considered a high-risk driver. High-risk drivers pay more on their premiums, and in order to get rid of the high-risk label, they need to maintain coverage for at least six months.
- Major life events. Several events that happen in the life of a policyholder can affect their premiums. Events, like getting married, moving to a low-crime neighborhood, or buying a safer car, can make the policyholder premium rates to decrease. Events, like getting divorced, moving to a high-crime neighborhood, or buying an unsafe vehicle, will make the policyholder premium to increase.
- Policy renewal time is getting closer. This the best time for a policyholder to shop for online quotes. Many rival insurance companies will try to lure the policyholder to their companies, by offering him all sorts of discounts and offers.
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