Does Your Credit Score Impact Your Auto Insurance Rates?

Living in California comes with the perk of knowing your credit score doesn’t impact your auto insurance rates. While state law protects you from being unable to afford insurance based on your credit score, there are other factors that influence how much you’ll pay for the premium. Taking a look at how insurance companies assess drivers for their risk factors helps you take action to get the lowest rates possible.

Pay Attention to Your Location

Although your California address provides protection against your credit score impacting the rates, there does come a small downside to living in San Diego. Living within a larger city can increase the risk of having an accident due to the high traffic levels. However, if you live within some of the local suburbs, you might have lower rates for your auto insurance. Chula Vista is one of these areas that may have lower insurance premiums. Talking to an insurance company can help you identify if your location impacts your rates.

Maintain a Good Driving History

Insurance companies love to reward good driving, and there’s no better way to cash in on your cautious habits than by enjoying low rates. Some insurance companies allow you to use special devices that track your driving habits over time. On top of giving you feedback on your driving habits, you might also get special discounts for opting into the program. You’ll also be able to enjoy better rates if your driving record is free from citations, so be careful to stay within the local speed limits.

Expect Higher Rates for New Drivers

Sometimes, you can’t help having extra risk factors. Since new drivers don’t have lengthy driving histories, insurance companies tend to view them as being a higher risk compared to experienced ones. Fortunately, this shouldn’t take too long to change. Enrolling in a driver’s education course could also help you demonstrate safer driving to insurance companies.

Consider the Vehicle Type

That fancy luxury vehicle might be just what you want to see when you walk outside to go to work. But you’ll want to carefully weigh the extra cost of insurance against your desire to have the latest new vehicle. Insurance companies know certain makes and models of cars require more expensive parts and repair work if something goes wrong. Sports cars also tend to have a higher risk of being in accidents. While you may still decide to choose your dream car, asking for a quote from your insurance company can help you make an informed choice based on the rates.

Prevent Having a High Claims History

At the end of the day, your claims history is one of the biggest factors that influence auto insurance rates. Following driving laws helps you avoid many accidents. Yet you’ll also want to use defensive driving skills that include being aware of the other cars around you. Leaving yourself enough room to change lanes and pausing a second to check for red light runners before entering an intersection are simple ways to reduce your claims.

If you’re looking for affordable, reliable car insurance and high-quality service, call on the experienced agents at Altra Insurance Services. We can help you with a wide variety of insurance options, including motorcycle, homeowners, and renters insurance. San Diego County residents should call one of our friendly representatives today.