We all know that there lots of strange things that can raise your auto insurance rates. Insurers often base rates on factors that have little or nothing to do with your driving such as age, marital status, sex, jobs, credit scores and even students’ grades.
What’s not as well known is that some of the popular beliefs about the things that will raise your auto insurance premium are simply not true. There are actually a number of potential premium increases that you do not have to worry about.
Some things that will not raise your car insurance premium:
- An accident that is not your fault. If you have a good driving record, even a severe accident caused by somebody else may not affect your insurance rates. Many insurance companies are also willing to cut slack to long term customers that pay their premiums on time. Note: you may have to prove the accident was not your fault to avoid a price increase. In states with so-called no-fault insurance accidents do not matter because insurers raise everybody’s rates to cover the cost.
- Driving a red car. The idea you’ll pay more for insurance for a red-colored car is a myth. There is no statistical evidence that red cars get into more accidents or receive more attention from the police. It should also be noted that insurers do not even ask for your color so this myth is definitely busted.
- Driving a sports car. Simply driving a sports car may not raise your insurance premium. Factors like your driving record, the cost of the car, and the laws in your area usually have more impact on the cost of insurance than the kind of car you drive. Yes you will pay a fortune to insure a very expensive sports car such as a Lamborghini but you won’t pay that much more to finance an average sports car model. Expensive cars like Porsches come with higher premiums because of the price not the class of vehicle.
- Living in the city. Residents of some cities such as Detroit do pay far higher auto insurance premiums but not every city dweller pays higher rates. In fact some big cities such as Cleveland, Ohio, actually have cheap auto insurance. Other factors such as crime rates, driving records and state laws have far more influence on rates than the population density of your area. Contrary to popular belief many rural residents actually pay more for car insurance because they drive more. Some very rural states such as Arkansas, Oklahoma, Wyoming and Montana have some of the highest insurance rates in the United States.
- Getting older. Many insurance companies actually give older drivers a break because statistically they are safer drivers. Generally you should pay a lower auto insurance premium as you get older if you have a good driving record.
The good news is that are a lot of things that will not raise your auto insurance premium. That means some of the worries about higher rates are unfounded.
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