Surprising Factors That Could Affect Auto Insurance Rates
There are a number of factors that can affect your auto insurance rates – some of which may surprise you. Keep reading to learn more about what can impact your rates, and how you can save on your car insurance.
Your Occupation
There are a number of surprising factors that could affect your auto insurance rates. Your occupation is one such factor. Around 16% of drivers don’t believe a person’s occupation should affect rates. So, why does your occupation have an effect on your auto insurance rates? Insurance companies view certain jobs and industries are being riskier than others. Police officers, firefighters, and emergency medical technicians all fall into this category. They risk their lives every day on the job and, as a result, often have higher car insurance rates than the average person.
Truck drivers and construction workers also typically pay more for coverage because of the risks associated with their occupations. On the other hand, some jobs come with lower-than-average rates. Teachers, scientists, and accountants all tend to enjoy lower premiums because their jobs are considered less risky. Of course, there are always exceptions— an accountant who commutes through a high-crime area or a teacher who drives a lot for work— but these are generally indicative of how insurers view different professions.
The Type of Car You Drive
One of the main factors that insurance companies take into account when setting rates is the type of car you drive. Generally, the more expensive and luxurious the car, the higher your rates will be. For example, cars that are considered more high-risk, such as sports cars or luxury vehicles, may cost more to insure than safer and more economical models. This is because sports cars and luxury vehicles are more likely to be involved in accidents, and they are also more expensive to repair or replace. If you are thinking about buying a luxury car or sports vehicle, it is important to consider the cost of car insurance before you make a decision.
Your Age
The age of a driver is one of the many factors that insurance companies consider when setting rates. Young drivers, especially those who are just starting to drive, are considered high-risk and tend to pay more for car insurance than older drivers. Additionally, young drivers are more likely to be ticketed or arrested for driving under the influence. All of these factors contribute to the high-risk designation and higher insurance premiums. However, as drivers get older, they typically become less risky and their premiums go down.
This is because older drivers have more experience on the road and are usually better at driving defensively. In addition, they are less likely to cause accidents due to distractions like texting or talking on the phone. As a result, most auto insurers offer discounts for older drivers.
Where You Live
Where you live can also affect your car insurance rates. The cost of car insurance varies greatly from one state to the next, and even within states, the rates can vary drastically from one city to the next. There are a few reasons for this. The cost of car repairs, for example, can vary greatly depending on the area. If you live in a city with a lot of traffic, you’re likely to see more accidents and car thefts, which will drive up your rates. The cost of insurance also reflects the risk of filing a claim.
While there’s no way to completely avoid the impact of your location on your car insurance rates, there are a few things you can do to keep them down. Shopping around for car insurance is always a good idea, and you can also try to find a policy that offers discounts for things like safety features or good driving records. You can also ask your insurance company about bundling your car insurance with other policies, like home insurance, to get a discount.