What affects your car insurance rates

Why do you pay so much more than your next door neighbor who drives the same car?  

Why do you pay more than your mother who drives the same type of car?  

What are the secrets to your auto insurance premiums?

Let's face it....auto insurance does discriminate.  

• Single vs. married...yep.  If you are married you are more likely to pay less premiums than if you were single.  Also your job can affect your premiums.  
• Those of you who are in, what the insurance companies view as, high stress jobs; Attorney, Judges, Executives, Business Owners, etc. will pay a higher premium than other jobs such as actors, scientists, pilots, etc.  They look at the more stressful your job is the more likely you are to get into a car accident.
• Where you choose to live will also work in your favor or against you.  Those who live in urban areas will pay a higher premium than those who live in rural areas.  The justification; smaller towns mean less likely of getting into a car accident because there are less drivers on the road.
• We are all aware that younger drivers pay higher premiums and I have to agree with this.  As we get older, or should I say more experienced, we become better drivers therefore reduce our accident rate.  Did you know that your sex determines your rates also?  If you are male, single and under 25 you will pay higher premiums than most everyone else.
• Your credit history will determine your premiums also.  I am going to say that I do not agree with this, but who am I anyway, right?  The reasoning:  if you pay your bills on time and are not in "financial trouble" you are less likely to file a claim.  Here's my problem; what the heck does your credit history matter when you are involved in an auto accident?  But, again, who am I.
• How much you drive will lower or raise your premiums.  Work 40 miles from your home...oops you will pay more than someone who works 5 miles from their home.
• Your driving history.  Finally one I agree with......okay, agree with to a certain degree.  If you have multiple driving violations; DUI, speeding, etc. you get higher premiums because, yes, you chances of getting into a car accident is higher than those who don't violate the driving laws.  I, personally, do not want to pay the same premiums of those who cannot obey the driving laws.

So what can you do to lower your auto premiums?  Let's see, if you are a single male under 25, don't drive.  If you have a stressful job, quit and go work at McDonald's just make sure it is close to your home.  Pay your bills (okay you should do this anyway) and make sure that no matter what happens your bills get paid.  With the economy the way it is...I'm thinking if your auto insurance gets paid and a credit card doesn't...they would be happy and lower your premiums because you see them as "more important" but, again, what do I know?  And finally, move to a small town (hopefully they have a McDonald's there).  

I look at my premiums.  I have been in two big car accidents which NEITHER was my fault.  I have only those two blemishes on my record.  I have no speeding tickets on my record, no DUI's, nothing.  BUT because I have filed two claims: because I have under-insured and uninsured motorist coverage on my policy (which I pay for each month) my premiums are higher.  Why offer these types of coverage if you are going to be penalized if you use them....seriously whose fault is it that the person who hit you isn't adequately covered?

Stay tuned for more about Insurance secrets that you were probably not aware of.

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