Losing your job can be extremely difficult. Life if full of ups and downs. It may be surprising that major changes in your life like having a baby, selling your home, or even losing your job can all have an affect on your insurance. Now you may be wondering how it could possibly have an impact on your car insurance. Well, you can rest assured your ex-boss certainly will not be notifying your insurance carrier.
However, your credit score could come crashing down pretty quickly and your insurance carrier could find out about it and raise your rate.
Most likely you are receiving a financial stability discount on your car insurance. Nearly all insurance carriers and almost all states allow insurance companies to rate drivers based on their credit score. If your credit score takes a large dip due to a job loss, you could see a big spike in your car insurance payments. It is definitely something to think about. There really isn't any way to hide from this rating system.
When you are in a tight situation the best thing to do is to cut out the items you can live without. Do what you can to keep up on the bills that directly effect your credit like your mortgage, credit card bills, and car loans. Try to make arrangements to stop late payments from affecting your credit score. Reduce your car insurance to the bare minimum for the period of time you are without work.
Getting the Best Financial Stability Discount
You do not have to get the best financial stability discount in order to benefit. A fair credit score is certainly better than a bad one. Unfortunately, moving from a preferred score to a fair score can be painful none-the-less. Research job search advise and try to replace your job as quickly as possible. Hopefully you can minimize the effects a job loss can have on your credit score.