Car insurance is expensive and your rate is determined by a number of factors. These include your age, driving record, your previous coverage, and what kind of car you have. But did you know your rate can also be impacted by things like where you live, your credit history, and your relationship status?
Read on to find out some surprising factors that you may not have realized can affect your car insurance rate.
1. Gender
You may know that age impacts your rate; rates are higher for those under 25 and over 50. But your gender also matters. Because females are less likely to have a car accident, many insurance companies charge them less. However, some evidence suggests that older women get in more accidents than older men; this sometimes leads to a slight increase in rates for older women.
2. Marital status
Married people tend to get in fewer accidents than single people. As a result, getting married can significantly lower your rate (especially for men). The amount your rate decreases depends on your previous history. If you’re a man who has a clean driving record and no accidents, your rate could be cut in half.
3. Credit History
How could your credit history possibly affect your car insurance rate? Some studies have shown that people with poor credit are more likely to take more risks when driving and get in accidents. Instead of using a score from one of the major credit reporting bureaus, insurance companies often pull your score and run it through a new system to determine their own version of your score. Note that some states have made it illegal to use your credit score to determine your premium.
4. Where you live
Most traffic accidents take place close to home. As a result, if you live in a more densely populated neighborhood, you are at a higher risk of accidents, theft, and collisions with injury, and, therefore, your rates may be higher.
It also costs more to repair your car in some areas, and some areas have higher incidents of theft. Moreover, some areas have higher rates of uninsured drivers. All of these factors can affect your rate.
5. Profession
Some auto insurance companies correlate a person’s profession with their likelihood of getting in an accident. For instance, delivery drivers are on the road constantly and are therefore more likely to have an accident. Airline pilots, on the other hand, drive a lot less and may be given a lower premium. Police officers, paramedics, and insurance underwriters are seen as more careful than the average driver and may also get lower rates.
6. Purpose for driving
Do you drive your car just for pleasure or do you also use it to drive to work? When you primarily drive for pleasure, insurance companies often consider you less likely to get in an accident, even if you drive farther. If you drive to work you are on the road more often; thus, you’re more likely to get in an accident.
As you can see, there are many different factors that go into determining your auto insurance rate, some that are a bit surprising. For more information on auto insurance in Scottsdale and Phoenix, Arizona, visit Summit Insurance Advisors.