Auto insurance rates are impacted by numerous factors. In many cases, consumers might even unknowingly miss out on some potential auto insurance rate savings due to other factors and issues within their lives.
The following is a list of several things that could affect your auto insurance rates:
Your Credit History
Failing to pay your bills on time can adversely affect your auto insurance rates. In fact, according to a recent survey of auto insurance customers conducted by NerdWallet, drivers with poor credit ratings can find themselves having to pay as high as twice as much as those drivers who have an excellent credit score.
A person’s marital status can affect auto insurance rates because statistical data shows that married people do not file as many insurance claims as singles. In fact, married people will actually find themselves paying less for auto insurance than those who are single, divorced or even widowed.
Education level has an impact on your auto insurance rates, too. The higher level of education that you have, the better auto insurance rates you are bound to pay. The education level indicates social and occupational status to insurers and underwriters. Highly educated people tend to buy multiple cars as well as multiple policies, making for a win-win for insurance companies to gain back discounts through multiple policies from the same household for everything else from life insurance to RV insurance.
Your job status can impact your auto insurance rates in correlation with your education level. A front line worker will pay more for his or her auto insurance than the supervisor or manager. Such distinctions help insurance companies evaluate the insured’s ability to cover deductibles in case of a claim.
Rent or Own
Owning a home has all sorts of benefits such as equity and and asset with the ability to appreciate over time, but it can also save you money on your auto insurance rates. Numerous insurance companies lower rates for those who own their own homes as opposed to renters. Also, these same companies also provide discounts for homeowners who have multiple policies such as home, auto and life bundled into an insurance package.
Grade Point Average (G.P.A.)
How well you do in school can have an impact on student driver discounts. For insurance companies, grades correlate with risk. The better the grades, insurers believe, the lower the risk. For young drivers, it pays to have good grades, even when it comes to auto insurance rates.
Likelihood of Insurance Switch
Some companies count of customers not comparison shopping when it comes to auto insurance. Based upon this assumption and prediction, these companies are not as likely to offer rates for loyalty and longevity with policies. Comparing rates might prove to lead to a switch to another insurance company, but most insurance companies do not expect many customers to make the switch or even a side by side comparison.
Consider these factors as you compare auto insurance rates.