Surprising Factors That Affect Car Insurance Premiums
Knowing which factors can lower your car insurance rate can help you make a wise decision when shopping for a new policy or negotiating a lower rate with your current carrier. Here are four lesser-known factors that insurance companies consider when calculating your monthly premium.
Profession
Auto insurance carriers take your profession into account when calculating your premium. Certain job roles are tied with an individual’s risk for getting into collisions. For example, delivery drivers and truckers are more likely to get in an accident, simply because they’re on the road more. By contrast, insurance carriers typically perceive police officers, insurance underwriters, and paramedics as more cautious drivers. So, if you’re in one of those fields, you can expect a lower insurance rate.
Marital status
Statistics show that married drivers tend to have fewer accidents than single drivers. In 2004, the National Institutes of Health performed a study on 10,525 adults. The results indicated that drivers who had never been married were twice as likely to get in an accident as drivers who were married. So, if you recently got married, ask your car insurance company for a discount. It’s common for carriers to reduce your premium 5-15 percent, according to Insure.com.
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Place of residence
Where you live also plays a key role in your auto insurance premium. If you just relocated or are about to, you can expect that your insurance rate will change. For example, if you live in a highly-populated metro area, your rates will be higher than if you lived in a less-populated rural area. Insurance companies also consider the rate of car thefts in your geographical region.
Driving experience and record
Another factor that insurance companies consider is driving experience. A teen driver, for example, will incur a higher premium than a mature driver over the age of 35. Carriers also evaluate your driving record; older drivers with a clean record can secure lower insurance rates than those with past accidents on their record.
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News Sources: Money Crashers, Insure.com, DMV
The News Wheel is a digital auto magazine providing readers with a fresh perspective on the latest car news. We’re located in the heart of America (Dayton, Ohio) and our goal is to deliver an entertaining and informative perspective on what’s trending in the automotive world. See more articles from The News Wheel.