Pricing insurance policies is no easy task. Insurers have to guarantee they can pay for all claims filed while still keeping rates reasonable for customers–and it can come down to something of a statistical gamble with very high stakes. To make sure they cover all their bases, insurers use a wide variety of factors to price insurance policies for each customer.
They use the information you give them when applying for a quote–like your age, and the type of car you drive–to formulate a rate for each specific policy. You can adjust some of those factors to lower your insurance rates, but others aren’t really alterable (at least not without making some hugely impractical lifestyle changes). If you’ve been wondering what factors impact your car insurance rates in the Mesa, AZ area, keep reading to find out more!
1. Your Marital Status
Studies have shown that married individuals–male or female, regardless of their age–tend to get into fewer car accidents. As such, married people look less risky to insurance companies–and they tend to have lower car insurance rates. Why does matrimony keep people safer on the roads? The jury’s still out on that one.
2. The Amount of Education You Have
Need extra impetus to finish that college degree? Well, it could end up lowering your auto insurance rates–at least a little. According to most statistical data, those with more education make less-risky choices than those with less education. Some insurance companies use that information to calculate car insurance rates.
3. Your Insurance Credit Score
Did you know you have an insurance credit score? It’s related to, but not the same as, your regular credit score. Your insurance credit score is a three-digit number calculated based on how up-to-date you stay on your payments, whether you’re in default on any accounts, how many insurance claims you’ve filed in recent history, the age of your credit history, and how much of your available credit you’re using. Some states (Hawaii, Massachusetts, and California) have banned the use of this info in calculating car insurance rates, but it’s still allowed in Arizona. Your insurance company may or may not use your insurance credit score to price your policy.
4. Your Vehicle’s Features
More expensive vehicles tend to cost more to insure–that’s common knowledge. But did you know that certain safety features can lower your auto insurance rates? Antilock brakes, traction control, and newer features like lane change alerts can all help lower your premiums. Something to think about next time you’re car shopping!
5. Your Gender
Many call it discriminatory, but it’s currently a fact of life in the insurance world: men cost more to insure than women. That’s because most studies show that males drive more miles, take more risks, and get into more accidents than females, even when all other factors are the same. Teenaged male drivers are currently the most expensive people to insure when it comes to auto insurance, and women between 30 and 40 years of age enjoy the lowest-priced policies.