Less-known Reasons Why Drivers May Get Expensive Car Insurance

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Compare-autoinsurance.org (http://compare-autoinsurance.org/) announces a new blog post, "Why Does My Car Insurance Cost A Fortune?"

Avoid overpaying on car insurance

“Getting online quotes and comparing prices will help you avoid overpaying ”, said Russell Rabichev, Marketing Director of Internet Marketing Company.

Compare-autoinsurance.org has released a new blog post that presents 3 surprising reasons why car insurance premiums can be really expensive:

  • Bad credit score. At first glance, a person’s creditworthiness should not affect how much he or she pays for car insurance. Under the FICO credit system, a person has a poor score if the score is below 580. A person with a bad repayment history is considered high-risk for insurance companies. That person is more likely to miss payments or drop coverage mid-term. Creating car insurance lapses will negatively impact the insurability score. If possible, improve the credit score using one-time payments, keeping a low credit utilization rate and balance transfer credit cards. Always talk with an expert about this delicate matter.
  • Small or inexistent loyalty bonuses. Loyalty should be a top focus for many companies. Many companies offer really tempting incentives to their safe drivers, in order to keep them loyal. These come usually under the form of a generous discount. However, there are companies that offer really small discounts or they do not offer at all. In this case, staying with the same carrier will damage the policyholder’s budget in the long term.
  • Price Optimization. This is another prime example when loyalty hurts the policyholder’s finances. Some companies practice this so-called “price optimization”. They gradually increase a policyholder’s premium upon renewal because that person is less likely to check the insurance market and switch carriers.

For more car insurance info and money-saving tips, please visit http://compare-autoinsurance.org

Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

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Russell Rabichev
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