Changing Car Insurance Companies The Right Way

102 17
Do you ever wonder why it is that self help and "how to" writers make so much money? It's because everyone's convinced there's a 'right way' and a 'wrong way' to do just about everything. Most of the time right and wrong are open to interpretation, but when it comes to changing car insurance companies there are some definite rules and addendums (and plenty of fine print) that you want to make sure not to let slip through your fingers.

First and foremost, let's talk about your credit score. Why? Because the one thing most drivers don't realize is that the state of their car insurance directly affects the digits in their credit score.

No one really expects you not to change car insurance companies over the course of your lifetime. If you seriously stuck with one company from the day you got your license until the day you retired your car keys you might save yourself reams of paperwork and hundreds of dollars in migraine medication, but you're also virtually guaranteed to end up paying too much for your insurance. Why? Because the discounts insurers are offering to their long-time customers can't hold a candle to the deals they're willing to cut to increase their clientele.

It's tempting to just drop your old insurance carrier the minute you pick up a new policy. After all, if you just stop paying your monthly bills they're going to cancel your coverage sooner or later and save you the trouble of making a phone call, right? Absolutely! You can just wash your hands of the entire affair and move on with your new, economically sound lifestyle-until it comes back to bite you in the rear end.

Did you know that car insurance companies report cancellation due to non-payment of premiums to the credit reporting bureaus? At that point you become a credit risk, which is bad news for your credit score and can send your hopes dashing against the rocks if you try to get a loan-or get a job-or go back to school. As a matter of fact, it seems like you can't do anything these days without that little three digit number following you around. Letting your credit score slip isn't going to be doing yourself any favors.

Then there's the issue of what letting your insurance slide is going to do to your car insurance rates. When you're dropped for non-payment of premiums you almost immediately become a risk to every other insurance provider out on the market. That means you're going to have a hard time finding a new insurance provider when you drop the one you left your other company to be with, and when you do you're probably going to find yourself paying for the privilege.

Don't you have something better to do with your financial assets than repair the damage that could have been avoided with a simple phone call?
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
You might also like on "Business & Finance"

Leave A Reply

Your email address will not be published.