Credit scores and credit reports don’t always tell the full story about a person, but they do indicate your ability to pay your bills.
Car insurance companies do check credit as to determine your insurability. Your premium is a bill like any other, and a poor credit score can alert an insurer of financial trouble. If there is a chance that you may miss premium payments, an insurer may decide you are too risky to insure.
The higher the deductible, the lower the premium – but the more you'll pay out of pocket in case of a claim. The lower the deductible, the higher the premium – but the less you'll pay if you have an insured claim.
You should buy auto insurance before you begin driving, as it’s required in most states. Driving without insurance is often illegal and leaves you financially vulnerable.
The car you drive can have a substantial impact on your auto insurance premium, especially the amount you pay for your comprehensive and collision coverage. The insurance rates for comprehensive and collision coverage are determined by looking at the type of vehicle loss history – how often it is stolen, and how costly it is to repair or replace after an accident. Your Farmers agent can help you by letting you know which vehicles have better insurance values.
Generally speaking, the insurance goes with the car. For example, if you have an accident while driving someone else's car, the owner's insurance would apply toward damages first. Your auto insurance would generally apply in the event the owner of the vehicle had no auto insurance or did not have enough auto insurance to pay the damages.
You’ll want to be ready with names, addresses, dates-of-birth, and numbers of accidents/violations for all drivers in your household. And having your current insurance policy or declaration page handy is helpful, too.
Generally, being in an accident will not cause your policy to be cancelled. However, after the facts of the situation are reviewed, you may be required to pay a higher premium for your policy upon renewal.