Car insurance: to some, it’s a pain, but to others, it can be life-saving in the event of an accident. It’s also mandatory; it’s only legal to skip out on auto insurance in two states, New Hampshire and Virginia. Compare that to, say, health insurance. Even though it’s a good idea to have it, 12.9% of Americans still didn’t have health insurance by the end of 2014. Rates for other policies, like renters insurance, are even lower: just 37% of renters have their property insured, according to a survey from 2014, despite average premiums being as low as $12 per month.
But how much you pay for car insurance isn’t so much based on your driving record as it is a series of other factors. Here are some things you may not have known determined your car insurance costs:
Your Age
Age is one of the biggest factors in determining car insurance premiums. Drivers who are between 16 and 25 will pay the highest amounts for their car insurance, but once they get past their mid-twenties, their rates begin to go down. In fact, it’s not until you turn 70 that those costs begin to go up again. For the most part, this is just based on simple mathematics. Those who are under 25 or over 70 are statistically the most likely to get into a car accident.
Your State
On average, some states actually have far higher premiums than others do, and much of that has to do with the policies in place that determine fault in accidents. Recent statistics from Insure.com show that Michigan has the highest yearly premiums on average per person: $2,476. The lowest premiums were found in Maine for just $805 per year. Those car insurance rates were calculated by choosing 10 different zip codes in each state and averaging the premiums paid. And if you think those averages aren’t relevant to you because you’re a good driver, think again. All of the data gathered by Insure.com was for the same hypothetical driver: a 40-year-old man with a clean driving record and a good credit score.
Your Gender
Believe it or not, women actually pay far less than men over their lifetimes for their car insurance rates. Just as insurance companies take age and location into account, they also look at other factors based on statistics and risk. Women, according to national statistics, are more likely than men to visit a doctor, which lowers their health insurance premiums, and men are more likely to get into a car accident. But not all women’s car insurance rates are calculated equally. The New York Times reports that auto insurance premiums were 68% lower for a married, home owning woman with a college degree and professional job when compared to a single woman with a high school diploma and a rented home.
Do you think you should be paying less for your car insurance premiums? Be sure to get multiple car insurance quotes to find the best coverage your money can buy.
