Your Post Code And Credit History - Did You Know That They Can Have An Affect On Your Car Insurance
If you own a car, you'll be aware that there are two particularly substantial ongoing costs that are associated with the running of your vehicle
. With fuel costs being the first, there is very little that can be done to reduce the amount of money you spend filling up your car, unless you purchase a more economic model or you lower your mileage.The second ongoing cost - car insurance - is the one that can actually be massively influenced by the policy holder. The issue is, however, that whilst most people are aware of the major affecting factors, such as how new the car is or how many penalty points you have on your license, not many people know about the less obvious aspects that affect the price of their premiums.
Take the location of where the car is stored at night as an example. Although you can do all you can to reduce the chance of theft, such as storing it in a secure garage that is fully alarmed, if you live in an area that has a high level of vehicle theft, burglary or drug use (as drug users will often resort to theft to fund their habit), you will always see increased premiums over someone who lives in an area where this type of crime is minimal.
It is also worthwhile noting that if, for example, you've just purchase a new model from Porsche dealers, insurers will instantly expect you to carry out more security measures, simply for the fact that the vast majority of cars from Porsche dealers carry a high value and are also extremely attractive, making them a more likely target for theft.
Further to your post code, how well you manage your finances and personal debt can also have a substantial affect on how much your car insurance premium will be - often to the complete surprise of most.
There are two ways that your credit history can affect your insurance premiums, with the first being that if you have a poor credit score, it generally means that you have been unable to keep up with your payments, which in turn is usually - but not always - a sign that you have managed your finances poorly, perhaps not thinking things through properly or making irrational decisions.
If this is a direct reflection of your personality - poor judgement and irrational thinking - insurance companies are going to be reluctant to provide you with a policy as they believe that you are more likely to be involved in an accident than someone who has a good credit score.
Secondly, if you pay for your insurance policy on a monthly basis, you will find that the level of interest that the insurer charges for this privilege is greater if you have a poor credit history than it is for someone with a good history. This is simply because the insurer is providing you with a loan and therefore if you have shown poor financial management in the past and failed to make payments, the insurer needs to protect themselves from losing money should the same thing happen again.
There are various factors that affect car insurance that most would be surprised to learn about. Although you can't fully understand each and every one of them, it's worthwhile doing your research and thinking about your personal circumstances, so to ensure that you get the most affordable policy possible for you.
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