Car Insurance: Why Are You Charged More?
Updated: Dec 6, 2021
When you renewed your insurance coverage from last year, you expected to pay as much as the amount you paid the last time or at least something around that figure. However, when you got your billing statement, you were taken aback by the huge difference in the premium you were charged with last year and this year. In hindsight, you tried to figure out what was it about the year that passed that brought the insurance company to charge you more.
Can insurance rates be computed based on a number of factors? When you were a student driver, your rates a cheaper especially when you have good grades. When you got out of school and started working, your insurance rates changes too. Insurance companies take a good look at you and assess how responsible you are as a driver as well as the likelihood of getting into an accident.
The increase and decrease in insurance rates are practically normal, but some of the factors they consider can be quite surprising. Read through to find out:
You’re not married so you pay a bit more than those who are married. According to studies conducted by insurance companies, married people are likely to be more careful because they think about their spouses and kids who are waiting for them at home. Single people have higher injury rates than married people because they are found to be a bit more reckless and hot headed when stuck in traffic.
When you are renting out your house or an apartment space, the car insurance company might charge you more. They look into the possible liability coverage that you may require. Insurance companies are very particular with the parking space. Most houses and apartment spaces for rent do not have safe parking spaces; putting your vehicle at higher risk for damage or theft. The risk in the security of the vehicle is the main reason why insurance companies charge renters more.
Your loyalty to the insurance company can get your rates lower. It is one of the ways the insurance company can show you how grateful they are for the trust and confidence that you give them and their services. Most insurance companies even offer huge discounts if you choose to buy both your home and car insurance coverage from them. When you bundle those programs up, you can get them for much less.
These reasons might be surprising but they usually are the ones that pull your car insurance rates down or sky high. Drive safely every time!