5 Unexpected Lifestyle Factors that Affect Car Insurance

When it comes to car insurance, there are a lot of factors that go into figuring your premiums. By being aware of some of these factors you can gain some control and understanding over what you’re paying for.

1. The Type of Car You Drive

As a general rule, a car that is worth less will be cheaper to insure. If a 24,000 dollar car is totaled, the car insurance company will need to reimburse its owner for the 24,000 dollar value whereas if a $12,000 dollar car is totaled, the reimbursement will only need to be $12,000. This means that the owner of a more expensive car will pay higher premiums that the owner of a less expensive car.

2. Where You Park Your Car

When you’re at home, do you park your car inside a locked garage, underneath a car port, on the street, in your driveway, in your yard (slightly off the street), or somewhere else entirely? Where you park your car at night is an important factor that can affect the cost of your car insurance. Similarly, the type of area you live in also affects your car insurance. If you live in a high traffic area and park your car on the street you have a much higher chance of being hit (while the car is parked) than if you live in a quiet, residential area and park your car off the street. If you park your car inside a locked garage you not only minimize your chances of being hit but also reduce the risk of being the victim of a stolen or broken-into car. All of these factors play into the cost of car insurance.

3. Your Profession, Memberships, and Education

Some professions have statistically lower chances of being involved in accidents than other professions. For example, if your profession involves lots of driving in your personal vehicle your car insurance premium will be higher than someone whose profession does not. Also, those who work certain professions may even qualify for a discount on their car insurance. Another thing to consider is memberships in professional clubs such as AAA. Such memberships can lower your car insurance premiums. Finally, having a higher education can lower your premiums.

4. Your Gender and Personal Statistics

Female drivers statistically are safer drivers than their male counterparts and older drivers are statistically safer than their younger counterparts. Teenage male drivers statistically pose the highest risk to car insurance companies and therefore may face higher premiums. Of course your personal driving record will also affect your car insurance and those with fewer traffic violations and accidents will pay less than those with more.

5. Your Credit History

While it may seem surprising, your credit history often affects your car insurance. Drivers with poor credit ratings statistically are involved in more accidents and make more insurance claims than those with better credit ratings. 

 

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