The topic of interest in this article is still on my series on Hawaii auto insurance savings. I’ll take a look into an aspect that is becoming much more important to insurance companies in determining what an individual’s risk level is. This in turn affects your rates…
Do your best to have an excellent credit record. The logic of this position is really very apparent to those who have business dealings with people…
The way you handle your bills certainly is an indicator of your values. If you have a very poor credit record, an insurance company will surely take you as a bigger risk than another of similar profiles who has a good history.
Here is their thinking: Those who pay their bills in a timely manner are also more prone to be more responsible in other areas — including driving. They simply would not trust anyone who is careless with his/her bills to be less reckless when driving.
Furthermore, it means that you have a problem with timely payments. It suggests that you may also neglect premium payments or might even be declared bankrupt as a worst case scenario.
So what do you think will happen to your insurers in such a case? That’s not our main thrust here. Our focus is how it will influence your premium.
You’ll be made to pay more expensive rates since what you pay is a function of the risk an insurer associates with you. Some insurance companies may double your rate if you default twice on a credit card. Defaulting in your credit card payments for a certain number of times can even result in termination of your insurance contract.
So, do yourself a favor, do all you can do to keep an excellent credit history (As if you didn’t know you should).
A very good credit record is a basis for getting savings. Take it or leave it: Everyone likes doing business with people who have an excellent credit history. Such persons are not likely to miss payment on their rates. Insurance companies know this and love such people for it.
Like we said, you can save some bucks because of your credit history. But how? I am glad you asked. There are many sites out there that send you Hawaii car insurance quotes once you fill their form. Find as many of them as you can and get quotes from all. From the quotes given, compare to know the best offer. If you do this correctly you can make savings of over $1000 depending on your profile.