5 personal factors that can impact your insurance rate

by Holli Flowers, June 19, 2014

Females often receive more affordable coverage than males

No two people are the same, which means your car insurance rate likely won't be the same as your mother's or friend's. In fact, there are many personal factors that can impact your rate, which is why it is important to compare car insurance quotes when purchasing coverage, as not all providers will consider these factors the same. Here are five personal factors that could impact your rate:

1. Your age

One of the most important factors insurance providers use when coming up with your rate is your age. According to Edmunds, this information is used to research driving and claims patterns for people similar to you, so if you are a younger driver, chances are you'll see a higher rate, as these drivers often get into more accidents due to inexperience. As you get older, there is a good chance your rate will come down - as long as you don't get into any accidents - as you will then be judged in a different age bracket, which could have fewer incidents that increase insurance rates.

2. Your gender

Believe it or not, whether you are male or female can impact your insurance rate. According to DMV.org, males from 16 to 25 years old are considered at higher risk than females of the same ages based on statistics that show males are more reckless behind the wheel. As a result, males in this age group often face higher insurance rates than their female counterparts. Generally, as people age, the gap closes between male and females, however, some providers continue to offer women lower rates, as statistics should women receive fewer speeding tickets, and drive less miles.

3. Your credit score

If you watch TV at all, you probably see a commercial telling you to get your free credit score on a daily basis. While you may not think much about knowing this number, it can actually be beneficial in many aspects of life, including purchasing car insurance. In fact, some providers factor your credit score in when calculating your rate. Edmunds said actuarial studies have shown that how a person manages his or her financial affairs can predict the number and size of insurance claims they could file in the future. Unlike your age and gender, this is a factor that you can influence, so it may be a good idea to improve your score before securing a new insurance policy.

4. Your driving record

How you drive is one of the most important factors for your insurance rate. For example, if you have acquired a high total of speeding tickets, and caused multiple accidents, chances are the insurance company will consider you to be a riskier driver than someone with a clean record, resulting in higher insurance premiums. So, it is important to stay out of trouble while on the road. Obey the speed limit, and do whatever you can to reduce the risk of an accident, such as not texting and driving.

5. Your occupation

One thing you may not know is that your job can impact your car insurance rate. Providers use statistics to calculate how certain occupations can increase or decrease rates, and a few that come with low premiums, include scientists, pilots, actors, and artists, according to DMV.org. The reason behind this is that these jobs require careful attention to detail, which often translates into safe driving habits. Meanwhile, doctors, attorneys, lawyers, and real estate brokers come with high rates, as these jobs involve high stress and long hours - factors that can lead to poor driving habits.


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