5 Key Factors That Affect Your Insurance Rates
5 Key Factors That Affect Your Insurance Rates
5 most important factors influencing your insurance premiums, be they for car, home, health or life insurance:
1 Your Personal Information
Age: Young people or the very old pay higher rates.
Gender: In certain states/countries, men could end up paying more for auto insurance.
Marital status: Being married could bring lower premiums, especially in auto and life insurance.
Credit score (in states that allow it): A lower score could mean a higher risk to insurers.
2 Type and Amount of Coverage
Coverage limits: The more coverage you take, the higher the premium it will fetch.
Deductibles: You’ll pay more in premiums for a lower deductible, and less (and have higher deductibles) if you are willing to accept them.
Optional add-ons: Options including roadside assistance, replacement cost and accident forgiveness can bump up your rate.
3 Statement of Claims and Driving History (for Auto/Home)
Accidents or tickets: These will increase your car insurance rates.
Claims history: Frequent or high-dollar claims on any policy (auto, home, health) can lead to higher premiums or refusal of a policy.
4 Location
State and ZIP Code: Insurance is regulated at the state level. Rates can also be affected by local crime, risk of weather damage and the cost of repairs.
Urban vs. rural: Living in a city increases the likelihood of traffic accidents and crime, which can result in higher premiums.
5 The Insured Item or Person
Auto: The make, model and year of the car; safety features.
For Home: Building materials, age of house and safety features (such as alarms or sprinklers).
For Life/Health: Your medical history, smoking habits and ways of life (example: dangerous activities).
6 Steps to Review Your Insurance Coverage
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