Car insurance rates should reflect your chances of getting into an accident or filing a claim. Those who drive like crazy should pay more, right? But insurers sometimes calculate rates using factors that you weren’t aware of. Here are the determinants of your insurance rates.
Would it surprise you if certain occupations are more likely to make insurance claims? Some insurers charge people with high-status jobs with less primarily because they want them to get more coverage and policies.
Payment of Credit Card Bills
This shouldn’t be surprising anymore. But insurers take your credit history into consideration when calculating your rates. Drivers with poor credit usually pay more than twice for insurance than those who have excellent credit.
Do you own your home? Some insurers give discounts on car insurance for those who own their home. Getting multiple policies from the same company will earn you discounts as well.
Many insurance companies believe that marital status correlates to risks. According to surveys, married people tend to have fewer insurance claims than single or widowed individuals. In fact, about 2/3 of major insurers have a “widow penalty” that boosts car insurance rates by approximately 20% for widowers.
Drivers that receive more education usually pay less for car insurance. Drivers with bachelor’s degree usually get lower car insurance rates than those who didn’t finish college.
Your grades won’t only help you finish school, it helps you get lower car insurance rates as well! Most insurance companies believe that grades correlate with driving risks. They give discounts to young drivers who meet the following criteria:
- A 3.0-grade point or B average
- Make the dean’s list or honor roll
- Home schooled and in the top 20% of an acceptable standardized test
Whichever factors apply to you, it’s always a good idea to ask your agents for ways on how you can reduce your rates. There are actually plenty.
Robert Nichols Insurance Group offers auto insurance that can be tailored to your needs for a reasonable price. Get a free quote from us by clicking here and don’t hesitate to ask our agents for discounts. Call us at (561) 406-6153 or visit us at our office today.