Think your claims history, age, and vehicle type play the biggest role in determining your car insurance cost? Think again. There are a host of factors that can influence the cost of your car insurance. Not every insurance company uses all of these factors when pricing their policies, but many do. And some of them seem downright bizarre.
Your Credit Score
Did you know that you have an insurance-based credit score? This is different than your credit score based on your personal finance history–the record a lender would use to determine your eligibility for a home loan, for instance. But it does use information from your credit report like your payment history (whether or not you’re in good standing on your accounts), how much of your available credit you’re currently using, the number of insurance claims you’ve filed, and the age of your credit history. Some states don’t allow insurers to gather this information, and some insurance companies choose not to use an insurance-based credit score to influence their pricing.
Some occupations lend themselves to more risky individuals, and some don’t. Professional skydiver? Stunt man? Someone else for whom regular risk is part of the job description? You’re likely to pay more for insurance than, say, an administrative assistant. Some insurance companies use statistical information based on different occupations to determine how much they’ll charge you for coverage. On the up-side, this could end up saving you money, too–if you work in a “safer” field, that is.
Your Level of Education
Need extra incentive to finish your degree–or go for a higher-level one? It might lower your insurance rates. The fact is, more educated people tend to get into fewer accidents, so many insurers offer lower rates for more-educated individuals. Seem unfair? Some people claim this is a discriminatory practice (along with most of the other items on this list), but it currently stands as a factor that influences many insurers’ rates.
Another hot-button topic in the insurance world: male drivers pay more for auto insurance than their female counterparts, almost across the board. Many studies have shown that males tend to put more mileage on their cars and get into more car accidents than females. Obviously this isn’t a black-and-white issue, but it’s statistically significant enough that insurance agencies tend to give women a break on their car insurance costs.
How Far You Live From Your Workplace
The number of miles you drive to work each day can influence the amount you pay for car insurance, too. Happen to live closer to the office? You’ll likely pay less than those who have a long daily commute.
These are just a few of the factors that influence your insurance rates–along with more general and standard determinants, like your claims history, your driving record, and the type and age of vehicle you drive. Wondering if you can do anything to lower your insurance rates? Give us a call or stop by our office at Mayville Insurance. We’ll work with you to find a great policy that fits your needs and your budget.