All This Affects Your Insurance Costs



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Everyone that owns or drives a car has pondered what factors can have an affect on insurance premiums. The lower the insurance the better it is for your wallet. Yes, there are obvious factors at play here, such as how many miles you drive annually, your deductibles and what type of cover you go with, but these are only the tip of the iceberg.

There are dozens of factors at play, all of which affect your overall rate in some way or another. Of course, a lot of these factors may be outside of your control, but knowing what has an impact on your finances can’t hurt. Knowledge is, after all, power, and by knowing you’ll be able to make a much more informed decision the next time you need to purchase insurance.


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Your Gender And Your Age

You may think this is unfair, or completely fair, depending on your perspective, but young males typically incur much higher rates of insurance than young females. But before you start claiming sexism, it is important to know that insurance is based on risk and young males have more accidents according to the statistics. However, this switches around with age, and it seems that more mature males land better rates than females.

Your Credit Score

Pretty much every single insurance company out there is going to take into consideration your credit score and then determine how much you’ll pay as a result of it. There isn’t a specific cost associated with different ratings, but as a general rule of thumb, the lower your credit rating the higher your premium. As such, it is worth addressing your score, whether that be through debt consolidation, speaking to a financial advisor or simply making sure credit companies are up to date with their details. It could make a big difference.

Your Address

Where you live is a big contributing factor to what your rates will be like. The reason for this is most accidents happen close to home. As such, if you live in a heavily populated area where there are lots of cars on the road then your chances of having an accident increase. But it isn’t just accidents that are considered because the area in which you live allows them to make a judgment call on the chances of theft and injury too. As such, it could be worth a few hundred bucks a year for you to move just a couple of streets away.

Your Job

Another hugely influential factor is your job. Insurance companies make a direct correlation between a person’s risk of having an accident and their profession. As such, if you are a delivery driver or an investigative journalist, then you’ll face higher rates of insurance simply because you are on the road more than, say, an airline pilot, who will often be away on business. Another tough profession is a location scout. WHH often found it hard to get insurance because of his job, where he was not only driving a lot but driving within the proximity of famous actors, meaning any payout could be astronomical.

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