It is no secret that car insurance premiums paid by different people vary from one beneficiary to another. Under such circumstances, it becomes easy for someone to assume that they are being treated unfairly, especially if paying more than people they know. As much as it may seem so, car insurance providers have reasons to charge you more in most cases. So, the next time you feel it is not fair, consider whether you fall under the following categories. If so, you will understand why you are paying higher car insurance rates than others. So, without much ado, let’s delve into this intriguing topic.
You Didn’t Graduate From College
Most car insurance providers won’t hesitate to charge you higher car insurance rates than others if you haven’t graduated from college. It may seem unfair, but that’s how this industry works. Besides education level, most insurers will also consider your profession. So, it shouldn’t be a surprise for someone with a college degree to pay fewer premium rates than those with high school degrees.
You are a Parent to a Teenage Driver
Having a teenage driver added to your car insurance plan could also be why you are paying higher can insurance rates than others. That’s because most insurance providers consider them high-risk customers. They have facts to back their conclusion since most teenagers cause accidents, especially within one month of acquiring their driving license. However, that shouldn’t be enough to deny your teenager to start driving. After all, there are insurance companies that offer discounts to teenage drivers. Others provide credit for safety training to drivers.
The Cost of Repairing Your Vehicle
The cost of repairing different vehicles is no news to car insurance providers. Therefore, as they determine your car insurance rates, they won’t hesitate to factor in that. So, if you are paying higher car insurance rates than others, there are high chances that your vehicle will be expensive to repair.
There are High Chances of Your Car Being Stolen
Did you know that some car models are prone to theft? If not, that’s the case, and excellent examples include Honda Civic and Ford pickup, especially the full-size model. Again. That’s something your insurer will consider when determining your premiums. Other than the probability of your car being stolen, they also weigh the chances of parts of your vehicle being stolen. Rest assured that your car insurance rates will also be relatively high if it is high.
Your Car Model’s Performance During Crash Studies
Some car models perform poorly during crash safety studies. They usually show more damage after crash tests than other vehicle makes and models. If yours happens to be one of them, it goes without saying that you will end up paying higher car insurance rates than others with different cars. That’s because car insurance providers consider the former a safety risk. It is easy to tell where your car model falls. The Insurance Institute for Highway Safety (IIHS) and National Highway Traffic Safety Administration (NHTSA) usually has these records.
Renters vs. Homeowners
In most cases, the premiums that renters pay for their car insurance are 7% higher than homeowners’ rates. However, it is important to note that there are exceptions that treat both camps equally. Additionally, the formulas used to calculate the rates differ from one company to another. Therefore, as you choose your auto insurance provider, you need to know if your home arrangement matters. If you own a house, go ahead and look for a company that favors homeowners. On the other hand, if you rent a house, avoid insurers that charge you higher car insurance rates than others just because of that fact.
Longer Routes to and from work
What’s the distance that you cover when commuting to and from work? The answer to that question could explain why you are paying higher car insurance rates than others, especially if it is a relatively long journey. Why? From the insurer’s point of view, the longer the distance covered daily, the higher the chances of getting into an accident. That’s regardless of how good you are as a driver. After all, many factors are out of your control. They include reckless drivers, traffic delays, road construction, and bad weather conditions, to mention a few. If possible, change the route or the residence to have a short work commute. Alternatively, you can avoid driving your car every day. Such decisions could make you pay less than before for your auto insurance.
Your Credit Score is Poor
Did your car insurance provider ask for your social security number? If you are nodding, there are high chances of the company checking your credit score. Some companies use it to determine the auto insurance premiums you will pay. If your score is poor, that’s enough reason why you are paying higher car insurance rates than others. After all, the insurers assume that there are high chances of filing a claim if you have a low credit score than people with great credit scores.
The Area of Residence
Yes, your zip code could also be why you are paying higher car insurance rates than others. So, if you live in a large city or a high crime neighborhood, expect high car insurance rates. These areas are associated with car vandalism incidents, car thefts, and high accident rates. Under these circumstances, you are a high-risk customer to your insurer. Sometimes, your address may not be considered if that’s not where you store or park the vehicle. So, your address may be a non-issue if you keep your car in a safe place, such as a locked vehicle.
You Have Different Insurers for the Various Insurance Plans
It is no secret that bundling is one way of saving on your car insurance. That translates to purchasing your different insurance plans from the same insurer. If you do so, expect discounts from these companies. For instance, bundling your car and home insurance is enough to see you pay less by 16%.
So, why are you paying higher insurance rates than others? The question won’t plaque you anymore since the answers are now at your disposal. It turns out that the reasons may have nothing to do with your claim history or driving record. As a matter of fact, most reasons are beyond your control. How then do you ensure that you lower your premiums? The article has also given several remedies to this. Also, remember that FindMyQuotes can also help when choosing a car insurance plan.