Choosing Insurance Doesn't Have To Be Stressful

Three Things You Didn't Know Would Increase Your Auto Insurance Rates

If you're shopping for auto insurance, you know it can be pretty confusing trying to figure out why your rates are what they are. There are a lot of factors that go in to figuring our your rates, including your driving history, where you live, how many miles you drive each day, and of course, the vehicle you drive. But there may be several factors at play that you had no idea about. Here's a look at three things that could mean you're paying more for your auto insurance without even realizing it.

You Turn 50

Most people are aware that young drivers are often considered inexperienced, and will pay more for their auto insurance. But once you hit the age of 21 or so, age isn't an issue (at least with car insurance) any more, right? It turns out, that's not true. Many auto insurance companies will raise rates for drivers once they turn 50, considering them "older drivers" and more of a risk to insure. This age increase may not make sense when you consider that drivers aged 64 to 69 are considered among the safest drivers, but it's shown that drivers in the 85 and over bracket have more automobile crashes for every mile driven than any other age group.

You Have Poor Credit

Your credit rating doesn't really have anything to do with how you drive, but having a poor credit rating could increase your auto insurance rates. Why? Bad credit doesn't mean you're a risk to crash, but it does mean you're a risk when it comes to payment. After all, as far as the auto insurance company sees it, if you're missing other bills, there's a good chance you could miss theirs. If you're seen as a "less than reliable" customer, expect to pay more.

Your Friend Causes An Accident In Your Car

This one may not necessarily seem fair, but if you have a friend driving your car, and they cause an accident, your rates will likely go up. If your friend volunteers to pay for the damages out of pocket, and doesn't involve the insurance company, there will be no increase, but if insurance pays for damages, you should expect to pay more. The only loophole here would be if your friend was driving your car without permission. This would likely mean you won't pay more for insurance, but it would bring a whole host of legal issues in to play.