Surprising Things That Could Torpedo Your Search for Cheap Car Insurance

Many drivers assume that car insurance rates are based on how well they drive and to some extent they are right. There are, however, some surprising things that could raise your car insurance rates this article focuses on a few of those factors.

When you shop for car insurance, you expect your driving record to be reflected in your rates. But your premiums can be impacted by far more than how well you drive. Just consider some of these factors, and how they could cause you to pay higher rates for the protection you need.

Credit Problems

It may not seem fair, but how you handle money can be just as important as how you handle your car in the eyes of the car insurance company. That is because many of the internal studies the insurance companies have done show a correlation between credit problems and insurance claims. That does not mean, of course, that you become a worse driver when you get into financial difficulty. But from a statistical standpoint having a poor credit score does make you more of a risk.

If you do have a spotty credit history and feel that it is impacting your insurance rates, it makes sense to seek out a company that does not consider credit scores when setting rates. These companies do exist, and they often advertise the fact that they base their rates solely on how well you drive.

Where You Live

Your ZIP code could play a big role in how much you pay for car insurance, although you might not be able to do much about it. Chances are it will not make much sense to move just to get a lower rate on your car insurance, but it is important to at least be aware of this factor.

Some parts of the country just seem to have more car crashes, and if you are unlucky enough to live on one of those locations you will likely to forced to pay the higher rates that go with that increased risk. You can, however, do some shopping around, since every company has its own criteria when setting rates.

The Type of Car You Drive

You probably already know that driving a brand new sports car will raise your insurance premium, but that might not be the only problem. The type of car does affect how much you pay for insurance, but it is not just the sports cars that get dinged in this regard. For instance, if you drive a smaller car, especially one that fared poorly in crash test, the insurance company might consider you more of a risk.

The same is true if you drive an SUV that fared poorly in rollover tests and other government safety standards. It is a good idea to consider insurance costs carefully when you shop for a new or used car. By the time you own the car, it is generally too late to do anything about those higher insurance rates.

Your Job

It may seem surprising, but some car insurance companies look at various aspects of your job when they determine your premium rates. For instance, a company might give you a discount for being a long-term employee, so if you are a new worker you might have to pay more.

Some car insurance companies also look at your job classification when determining rates. In many cases that means that workers classified as blue collar must pay more for a car insurance than their white collar counterparts. Not all companies use these kinds of distinctions, so it is important to ask, especially if you work at a blue collar job.

Understanding how car insurance companies determine their rates can help you get a better deal when you start shopping for coverage. The more you know about how car insurance companies operate, the better off you will be.

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Title Post: Surprising Things That Could Torpedo Your Search for Cheap Car Insurance
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