Impacting How Much Insurance Costs for Contractors and Handyman
Although credit history is listed as one of the qualities commonly used to rate vehicle owners, in many states this practice is heavily regulated, and in three states it’s banned altogether. For example, the Washington State Office of the Insurance Commissioner says that state limits the use of credit scoring by not allowing insurers to deny someone auto protection based solely on their financial information. While some consumers and government officials believe looking at credit history to be either irrelevant or potentially biased, many insurers feel that a person’s fiscal habits directly relate to their likelihood of filing claims. Though they may not know it, drivers can help control coverage costs by maintaining sound financial practices.
But because prices are largely based on perceived risk, one of the most effective ways to get cheaper coverage is to maintain a clean driving record. Automobile accidents and moving violations usually only stay on a person’s driving record for three years. If vehicle owners can avoid filing claims or receiving moving violations for that long, their rates likely will decrease considerably.
In many states, motorists can take pre-approved driver training courses to better their abilities behind the wheel and potentially cut coverage costs. Often, insurers will award special discounts to drivers who complete these courses.