Is Your Bad Credit Keeping You From The Best Car Insurance Rates
If you have bad credit, you’re going to have a little trouble getting the best car insurance at a good rate. While there are several other things that you can do to achieve a decrease in your car insurance premium, the main thing that you need to concentrate on is improving your credit report. In order to improve your credit report, though, you’re going to need to save some money.
- Get your discounts.
First things first, as you begin on your path to a better credit report, you need to make sure you have the money to fix it. In order to save more money, you should try to get your current insurance premium down as much as possible. Take advantage of any discounts that you have available to you, raise your deductible, and cut your coverage if possible. If your own company does not give you the insurance quote, then thin about changing providers.
You also should try to cut your spending in other hours. Lose the coffee, if you know how to cook, then do so instead of eating out, and so on.
- Start big, or small?
My method has always been to pay off the smallest debts first, and then move up to the bigger ones. I like to pay things off in chunks, but this might not be as good for you. Remember that, while your credit report will improve while paying off, it will not be clear until the debt has been entirely cleared off. You have two plans of action here.
- Pay off the smallest debts first gradually working your way up.
- Pay off the debts with the highest interest first.
The second option is truly the best, because you would be keeping these debts from growing. Once you have a good credit report, you will be able to get the best car insurance rate.
Cheap and Easy Ways To Get a Lower Car Insurance Rate
Reader question:
What are the cheapest and easiest ways to get a better rate on my car insurance policy?
Margo
That’s a great question, Margo.
There are two main ways that anybody can use to lower their car insurance premium without lifting any more than a finger. All you have to do is call your car insurance company and spend about ten minutes on the phone, and with both of these changes you can save around fifty percent or more on your current car insurance premium.
The first one I want to address is
- Cutting your coverage!
Collision and comprehensive coverage take up about forty percent of your premium, so if you cut them out you’ve saved almost half of what you were paying already. However, you have to figure out if it is good for yo to drop full coverage and stick to the minimum liability. If you have a leased car, or if you’re buying a new car in payments, then you are probably required to have comprehensive and collision coverage on your insurance policy.
If you’re car is only a couple of years old, then you might want it. No one wants to spend a couple of years paying off a car, and then total it for nothing. I suggest you decide based on how much your car is worth. Case in point: this car
probably does not need comprehensive or collision. The general rule that I go by is that if it’s worth less than a thousand dollars, then you need to cut it down to the minimum liability required by your state. There’s no reason to pay more for your insurance policy than your car is actually worth. That’s just crazy.
Way number two to get a good deal on your insurance policy without barely lifting a finger:
- Raise your deductible!
This is the thing that most people are scared of, because they think that if they raise their deductible, they might not be able to afford it when the time comes to pay for it. Note to class: if you’re a good driver, you don’t have much to worry about. When are you ever going to have to pay your deductible? I have a thousand dollar deductible and I’ve had it for several years, and haven’t had to pay it once.
And if you’re a bad driver? Aren’t you paying enough for your insurance policy as it is? Instead of fretting about the high deductible, raise it, and then put the money you’re saving in a savings account with interest. You might never have to use it, and in the meanwhile, it’s sitting there getting bigger and bigger. I did this three years ago when I first raised my deductible, and I put the savings in a high interest money market account, along with my other savings. It grows by %5, and I’m making money without doing anything at all.
Keep these two things in mind when you’re trying to figure out a way to save on your car insurance premium. Remember that even if you can’t do anything else, you can definitely raise your deductible and cut your coverage.
Cheers,
Fashun Guadarrama.
Can I Drive in California With An Out of State Expired Drivers License?
Reader’s question:
I live in California. Can I drive with an out of state license or expired license and still be insured?
Mike
Good question Mike.
If you just moved to California and just placed and insurance to your vehicle, you should maintain an insurance with an out of state license until you are able to purchase a car insurance in California. But it should be done quickly since you are now living in California. If you have a job or residing in California, you are required to get a driver’s license within 10 days. Aside from getting a drivers license, you will also need to register your car to the California Department of Motor Vehicle. Those that resides in other states may operate their vehicle with the current registration under their name from their residence state for up to six months or until they:
1. become California residents
2. has a home owner’s exception in California
3. lease or rent in California
4. Enroll in an institution of higher learning in CA
5. Intend to live on a permanent basis in California
There are fees that needs to be paid within the 20 days of residency to avoid penalties.It is actually illegal to drive with an expired license in CA. You should try to get it renewed or get a CA license as soon as possible to avoid citation from the law enforcement.
Goodluck!
MariCAR
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