I got this call today from an off and on customer that yes is about 58 years old, married, has two cars, and one ticket. I quoted him $224 a month for his car insurance. He wanted to know why it was so high when it should be around $170 per month. It was an easy answer that was not so easy to say. It is his insurance score.
As with many people these days keeping his car insurance in force it a problem. With rates so high it is hard to afford and if you let your insurance cancel or lapse it does not get better, it gets worse. First the policy you have is based on the rules at the time you bought it, and those rules can change at any time for new policies. Second every time you have a cancellation or a lapse it gets reported on your insurance score which makes you less desirable to insurance companies.
Part of it is that they spend money to get you has a customer, to pay to produce your actual policy, and pay to send you notices. The other part of it is that one of the biggest factors in insurance is risk. You have to have insurance because there is always a risk that you could be in an accident or injured in or around a vehicle. When an insurance company looks at your record they look at tickets and accidents as they show how risky of a driver you are. So does your habit of driving without insurance - that says risk taker to insurance companies and your rate is higher.
Keeping your insurance in force, and increasing your limits just a little bit as soon as you can catch a break will both give you cheaper insurance in the long run. You won’t look risky.
Fortunately when I put it to this customer pretty much this way he understood. And he knows what he has to do if he wants cheaper insurance. Give us a call at Pulse Insurance 503-489-3143 and we will help you get the cheapest insurance you can so you can get it even cheaper in the future.