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Even if you have had insurance for decades, there are likely aspects of insurance you do not fully understand. That is not by accident. Some insurance companies do not want consumers to know everything about the industry because the more you know, the less they earn. Finding affordable car insurance is possible when you apply the following hidden facts to your search.

Fact #1: Factors that have nothing to do with your driving ability may impact your rates
If you are involved in an accident or get a speeding ticket, you expect to be penalized with higher rates from your insurance company. But you probably are not aware that being late with credit card payments or struggling with your mortgage payment can also impact your ability to get affordable car insurance. Factors that are included by some insurers during rate calculations include:

Credit history – if you pay your bills on time, you are dependable and pose less risk to insurers.
Education – insurance companies believe drivers with college degrees are more responsible and take fewer risks when driving.
Employment – insurers assume drivers with higher paying jobs are more trustworthy and less likely to be reckless drivers.
Gender – the insurance industry makes a sweeping generalization about drivers based on gender, suggesting male drivers are “more likely” to be in accidents so your rates are automatically higher if you are male.
These are just a few assumptions insurance companies may make about you that have nothing to do with whether or not you are a safe driver.

Fact #2: Your insurer can cancel or choose not to renew your policy
People who get a lot of daily mail do not always take time to open each envelope and review the contents. Getting a letter from your insurer may not seem important. But you could end up with a lapse between policies if you do not realize your insurer cancelled or did not to renew your policy. A history of lapsed coverage can make it difficult to find affordable car insurance.

Fact #3: Being loyal can cost you by causing you to pay higher premiums
It may seem counterintuitive that brand loyalty can work against you when so many insurance providers offer customer loyalty discounts. However, if you have been with the same insurance company for years or even decades, you may not be getting discounts you qualify for from your current provider or offered by other insurers. You can find more affordable car insurance by shopping around and comparing discounts.

Post Author: Affordable Car Iinsurance