Weird Stuff That Raises Car Insurance Premiums

We all know that insurance companies operate in a bizarre world where logic and common sense don’t always apply. There is weird stuff that raises car insurance premiums. Even though they defy logic, insurers swear by some of these factors. Some of the weird things that can raise your car insurance premiums include:

• Being single. There are some studies that show single people get into more car accidents. Some insurance companies increase rates for single people. That means you could see your rate go up if you get widowed or divorced. It also means that couples who live together without a marriage license could be paying more.

• Having a low credit score. The idea here is that person with a bad credit score is more irresponsible and more likely to get into an accident. The unfair aspect of this practice is that many responsible people who were victims of the economic downturn have low credit scores. Keeping a good credit score might help you lower your insurance rates.

• Being male. Some insurance companies charge higher rates to males, particularly young men because they are more likely to get into an accident. Single young men sometimes get hit with a double whammy.

• Getting bad grades. Many insurance companies give teenagers and young adults that get good grades a good student discount. The idea being that those who get good grades are more responsible and are better drivers.

• Turning 50. Believe it or not some insurance companies raise rates when you turn 50 because they feel the driver is more accident prone. The interesting thing is that statistics don’t support this practice. People between 64 and 69 are statistically the safest drivers.

• Having a more powerful engine in your car. Some insurers will raise your rates if your car has a bigger engine.

• Not having a college degree. Some insurers will give you a break for every grade of education you complete. Other insurers will charge those with just a high school diploma a higher rate.

• Your job. Some insurers will charge those in certain jobs such as lawyer and school teacher lower rates. They will charge blue collar workers a higher rate because they are considered bad risks.

Avoiding Weird Car Insurance Rate Increases
The best way to avoid weird car insurance rate increases is to shop around. Not every insurance company uses these criteria. In many cases you can shave 15% to 30% off your premium by finding an insurer that doesn’t use some of these weird factors.

Some of the factors can work in your favor as well. Reporting your level of education and grade point average might lower your rates. Sending your insurance a company a copy of your credit rating when it improves is another good idea.