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Unexpected factors that affect auto insurance rates

Auto insurance uses a wide range of factors when it comes to calculating rates. However some of these factors look very unexpected when it comes to car insurance rates....More

Unexpected factors that affect auto insurance rates

Insurance companies are known for using all sorts of factors when it comes to calculating insurance quotes. They will use any piece of information they can get out of you explaining it through the risk-assessment techniques that are so important for them. Well, when they ask about your car or your driving record it's all quite easy to understand. However, there are some factors you would never guess being used to determine your auto insurance rates. And as awkward as it may sound they all actually help the insurer to determine the risk of covering your vehicle. So what are the most unexpected factors that drive auto insurance rates?

Marital status

Yes, you got that right: your marital status has a say in the final premiums you get charged with by the insurance company. As awkward as it may sound, this factor is used by insurers for a good reason. It was established that people who are married tend to be more careful in general, especially if they have children. Of course, this doesn't mean that there are no reckless drivers among married car owners. But the average number of claims filed by married people tends to be lower if compared to single drivers.

Age and sex

If your marital status felt weird what do you have to say about age and sex? In fact these are the primary factors when insurance companies start calculating your rates, since they automatically attribute the customer to particular demographic groups according to age and sex. Younger drivers usually tend to get the most expensive rates because they produce more accidents, and at the same time women are charged less for the same amount of insurance than men because they are statistically better drivers. And you decide to argue with insurance companies about discrimination they have all the statistical data to prove you wrong.

Education and employment

To make you feel even more confused, insurance companies will also request data on your employment and education, and you probably already know where it's going. It's hard to blame them, actually, because these can really help the insurer to understand how much of a risky driver they are dealing with. If a person has a well-paid job and proper education they are more likely to be a law-abiding citizen that doesn't cause too much trouble on the road. Bad news for those who dropped out of high school and never got a proper job.

Credit score

After all the aforementioned factors this one shouldn't cause any additional questions, though it may feel a bit strange to see insurance companies use it in their calculations. After all, what does credit score has to do with insurance? As it turns out it has to do a lot, since it was statistically confirmed that there's a direct relation between the customer's credit score and likelihood of filing a claim. So if you're unlucky to have a poor credit rating it may be a bit problematic for you to get cheap auto insurance.

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