Many drivers believe that car insurance rates are determined by how safe they drive. To a certain extent, they are correct. However, there are some unexpected things that can increase your car insurance rates. This article will focus on these factors.
You can expect your driving record to reflect in the rates you pay for car insurance. Your driving record can have a significant impact on your premiums. Consider these factors and the impact they can have on your premiums.
Credit problems
Although it may seem unfair, how you manage money can be just the same as how you handle the car. Many insurance companies have found a correlation between insurance claims and credit problems. This does not necessarily mean that you are a less safe driver if you find yourself in financial trouble. A poor credit score is statistically more risky.
It is a good idea to look for a company that doesn’t consider credit scores when setting insurance rates if you have poor credit. These companies exist and advertise that their rates are based solely on your driving record.
Where you live
Although you may not be able or willing to change it, your ZIP code can have a significant impact on how much car insurance costs. It is unlikely that you will be able to lower your car insurance rate by moving, but it is worth knowing.
There are certain areas of the country that have more car accidents. If you live in one of these locations, you may be subject to higher rates. However, you can shop around as every company sets rates.
What Type of Car You Drive
You may already be aware that driving a sports car can increase your insurance premium. But that is not the only problem. It is not only sports cars that can affect the cost of insurance. The insurance company may consider you a higher risk if your car is smaller, or if it fails to pass a crash test.
This is also true for SUVs that have failed to meet rollover requirements and other safety standards. When shopping for a car, it is wise to carefully consider the cost of insurance. It is usually too late to make any changes to higher insurance rates once you have the car.
Your job
Although it may seem strange, some car insurance companies consider your work history when determining your premium rates. A company may give you a discount if you are a long-term employee. However, if you are a novice worker, you may have to pay more.
When determining rates, some car insurance companies consider your job classification. This means that blue collar workers will pay more for car insurance than white collar workers. These distinctions are not used by all companies, so ask, especially if your job is blue collar.
Knowing how car insurance companies set their rates will help you to get a better deal when shopping for coverage. You will be better informed about the workings of car insurance companies.
