It’s not immediately clear how one’s auto insurance bill comes together. Just as Google rates websites, your auto insurance rate is a complex concoction of algorithms used to calculate your value. Most of the time, carriers are just hoping to break even on your premium payments. Ideally, you’d put as much money in as you’d ever need to cover the cost of an accident. So insurers are trying to keep prices competitively low, without putting them in debt. Here are five things you may not know about auto insurance pricing.
1. Women Pay Less.
If you’re a woman, you will (on average) pay about 12 percent less. This means that men will pay an extra $15,000 on auto insurance over the course of a lifetime.
2. College Grads Pay Less.
You will pay the most if you have a high school diploma or less. Rates improve with each successive degree.
3. Your Credit Score Matters More Than You Thought.
One of the biggest factors of your financial responsibility is your credit score. If you have a low score, expect to pay a higher premium.
4. Location Affects Your Rate.
On one hand, Louisiana has the nation’s highest premiums. A move to North Carolina would say drivers $1,500 a year in auto insurance. Similarly, moving from Washington D.C. across the river to Virginia will save $50 a month.
5. The Old and Young Pay The Most.
Statistically speaking, you’re more likely to crash if you’re old or young. Premiums peak from 18-25 and again from 55-75.
Actually, the best thing you can do to keep your auto insurance rate low is spend some time shopping around periodically to see how much you can save! Try our free online auto quote system today! There is no cost and no obligation.