Auto insurance rates fluctuate for various reasons. While drivers may assume that their driving record is the only factor that can negatively affect their rates, many other unexpected factors can also play a significant role. Here are five surprising factors that can impact your auto insurance rates.
1. Your Occupation
Your job might be one factor that can influence your auto insurance rates. Specific occupations, such as delivery drivers, journalists, and real estate agents, regularly use their own cars for business purposes. As a result, the chances of being involved in a car accident and filing an insurance claim increase. As a result, people with these jobs pay more for car insurance than others.
2. Your Education
Education is not a factor that people directly correlate with car insurance rates, but it can impact it. Research suggests that drivers with a higher level of education are less risky to insure, indicating that more education results in fewer car accidents. So, if you have a high school diploma, you may pay more than someone who has obtained a bachelor’s or advanced degree.
3. Your Credit Score
Insurance providers use your credit score to determine your insurance rates, which is why it’s important to maintain good financial health. Your credit score is a reflection of how responsible you are with your money, including how you pay your bills on time. Various studies indicate that people with poor credit scores are more likely to file insurance claims, and therefore present a higher risk to insurance providers.
4. Your Vehicle Color
The color of your car might not matter to you when you’re selecting your vehicle, but it can matter to insurance providers. Darker colored cars, such as black or red, are involved in more accidents and are more expensive to insure. In comparison, lighter colors such as white, beige, and silver are considered the safest on the roads, implying that they are less likely to be involved in an accident and are therefore less expensive to insure.
5. Your Marital Status
Insurance providers consider marital status as a factor in deciding auto insurance rates. Research suggests that married people are less likely to be involved in accidents than single people because they represent a higher level of responsibility. Therefore, married drivers usually benefit from lower auto insurance rates than single drivers.
In conclusion, drivers must remember that various factors impact car insurance rates. Some of these are surprising and unexpected, such as occupation, vehicle color, education, credit score, and marital status. It’s wise to be informed about these factors to adjust any elements within your control and potentially lower your auto insurance rates.