Last week, we had a customer call us and tell us that she and her cousin both have the same year, make, and model of car and are insured with the same insurance company, but, that her cousin was paying more for her automobile insurance than she is, and she wanted to know how this is possible?
Such a great question!
It does seem like if the year, make and model are all the same, and, assuming the coverages are the same, the premium (or amount the customer pays) should be the same, too, right?
Not necessarily. While the cars may be identical, the drivers of the vehicle are not—and that is what can make the biggest difference of all. Below are the three reasons that could impacting your car insurance rates.
- Your Age
According to wallethub.com, car insurance rates can vary by up to 367% based on age. Young drivers pay more for car insurance since they are considered to be less experienced and more likely to get into an accident. After the age of 25, driver’s insurance rates start to decrease.
However, on the other end of the spectrum, senior drivers are often charged more after they pass the age of 65. Not only are older drivers more likely to get into a car accident than younger adults, but they’re also more likely to be injured in a collision.
- Your Credit History
Your credit history is a very important factor insurers use when calculating premiums in most states. Drivers with poor credit scores pay an average of 71% more than drivers with good credit. On the other hand, if you have great credit, you can save a little money on car insurance.
- Your Marital Status
Your marital status is an important factor when it comes to your car insurance premiums because married drivers are statistically the least risky drivers to insure, with up to 50% fewer accidents compared to all other drivers. Let your car insurance company know if you get married, so your wallet can benefit from the positive statistics.
Other factors, like gender (teenage boys pay the most) your zip code, yearly mileage, your driving record, and specifically high-risk violations are all other considerations when an insurance carrier is evaluating the risk of insuring you and your vehicle. If you’ve recently gotten married or moved to a different zip code, don’t forget to call your insurance agent and ask them to re-evaluate your premiums— never hurts to see if these changes can provide savings to your car insurance premiums.
If you’d like NDI to take a look at what rates we could find for you, you can get a free quote here.
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