Ensure Blog

The Facts Of Life & Auto Insurance

auto insuranceSometimes our insurance premium is too high for comfort, but do we ever look above the total to see what’s raising our rates? Is it something we did, specifically? Something we’re not doing? Are there hidden fee’s attached, or is the price just plain old out of our control?

Maybe. Maybe not. There are factors that increase auto insurance; some in your control, some not. Some you may be aware of; others, not so much. If you’ve got a sparkling driving history, you may wonder why your premium is higher than your neighbors, who you’ve seen pull in with a busted bumper multiple times. What is he doing that I’m not?

There are “hidden” factors buried in auto policies that determine the rate paid. The reason these factors are considered hidden is because they’re not exactly optional. You don’t sign up for a “woman policy” and get 20% off your premium; you are a woman and therefore experience less accidents, overall, than men. See what we mean? You don’t tack on a “speeding ticket policy” and pay a higher premium; you get a speeding ticket and are stuck with paying a higher premium.

Factors like tickets, education, gender, marital status and even your job play a role in determining premium ratesSometimes, you’re stuck with the short end of the stick in one area, but can be redeemed in another. Let’s go over exactly how much you can pay or save depending on life circumstances.

  • Over the course of a lifetime, women, on average, pay $15 thousand less than men when it comes to insurance. This is because women tend to have fewer and smaller accidents, and are overall less risky on the road. Guys, this should tell you something. Consider taking a chill pill on the road. $15 thousand worth.
  • When you get a DUI (driving under the influence), your insurance rates increase about 94% in the first year. After 3 years, you’re still looking at a 63% higher premium. It takes a long time to work off an offense that serious, and insurance companies won’t let up. They want to ensure you become a safe driver from there on out. A few years with a sky rocketed premium can usually hit that lesson home.
  • When you get a speeding ticket, your rates tend to go up about 40%. After a year, your rates are still about 22% higher. Your premium price will go hand in hand with your traffic offenses. It’s for the same cause: to ensure you stay in line and drive carefully.
  • Teachers, doctors and cops tend to pay less for insurance. This isn’t because they have a secret society that procures low premiums. It’s because of their driving habits. Teachers don’t drive much, doctors avoid rush hour, and cops .. enough said.
  • When you get married, you save about 29% on your insurance policies. When you get a divorce, your rates go up 2%. This can also fluctuate depending on your spouses driving history.
  • Income and education level also play a factor in your premium. The lower your education, normally, the higher your premium. This may sound harsh, but it’s done to encourage healthier lifestyle choices- especially in younger people. If you try your best to maintain a clean driving record, and are making responsible choices, like furthering your education, insurance companies reward you.

Some of these factors can be prevented or tailored; some of them can’t. But they are all worth noting. For example, now that you know education affects insurance rates, why not go out and sign up for that continuing ed. class you’ve been eyeing up? Now that men know the lump sum they pay for risky road-rage, they can evaluate the importance of beating that guy who cut them off.

If you’re ready to make smarter choices on the road, or would like more insight into the factors that raise or lower your premium, we’d be happy to help. Give one of our Insurance Architects a call today, or click below, and let’s talk about creating a policy that’s right for you.

Formulate A Fair Premium