3 Surprising Factors That Play Critical Roles In Your Auto Insurance Premium

If you’re new to getting auto insurance, possibly because you are finally off of your parent’s policy and on your own, it can help to understand the factors that play a role in determining the amount of your insurance premium. Some of these factors may actually be a bit surprising to you.

1. Your Gender

If you’re a woman, you’ll be happy to know that you will probably pay less than your male counterpart when it comes to auto insurance. This is because statistics show that women are safer behind the wheel when it comes to three categories: speeding, accidents and DUI convictions. In regards to speeding, 24 percent of men are more likely to speed, which then contributes to a fatal accident. In addition, the FBI stated that more than 500,000 men were arrested in 2013 for driving under in the influence compared to just under 175,000 women. In California, your auto insurance premium can increase up to $2,700 after a conviction of DUI.

2. Your Age

Your age is another contributing factor that insurance companies use when deciding your premiums. If you’re under 25 or over 65 years of age, you will likely be seen as a higher risk driver. For new and teen drivers, they may travel less frequently, but statistics show they are more likely to be involved in accidents. In fact, the rate of deaths per mile by crash among teens between 16 and 19 years of age is triple the rate of 20-year-olds and older. Once you turn 25, your premiums will begin to decrease each year, assuming you maintain a positive driving record. However, they’ll start going up once you reach 65 years of age because senior citizens are known to have impaired vision and experience a reduction in cognitive functioning.

3. Your Job

As crazy as it may sound, your occupation has a lot to do with how low or high your auto insurance premiums will be. Some common high-risk jobs include lawyers, doctors, architects, real estate brokers and salespeople. This is because these careers are linked to a higher risk of accidents due to overtime, sleep deprivation, high stress levels and more frequent traveling. Some of the occupations with the lowest risk include teachers, accountants, nurses, scientists, pilots and artists. This is because these professions are more stable and detail-oriented.

If you would like to learn more about the factors that impact your auto insurance rate, consult with an insurance company in your area, such as Colling Insurance Services, Inc. You can find out state- and area-specific regulations, and you can also receive a quote and full explanation of the fees before you buy.