It comes as no surprise that smoking can hike your life insurance premiums. But, did you also realize that your day-to-day lifestyle, including work routines, can equally affect your auto insurance? Here’s why and what you can do to counter it.
Past Driving Episode and Accident Records
Insurance practitioners or actuaries are number-crunching specialists whose entire careers revolve around seeking minor statistical hints that predict the chances of a claim. Interestingly, their findings often leave them astounded. Insurance providers utilize these insights to tailor their products.
As such, factors like your lifestyle, dietary habits, and occupation significantly influence the cost of your insurance policy. Although insurance companies might vary in the evidence they accept for premium hikes, one commonly agreed factor is your past driving and accident history.
The more accidents you’ve been involved in, the higher the rates. Furthermore, elements like your driving history and infractions such as speeding may tarnish your insurance rates. A speeding ticket interpreted as a risky driving behavior could inflate your insurance rates, even if it’s your first offense. You may come across as a potential high-risk client caught after recurrent irresponsible driving.
Nevertheless, some insurers may not increase your rates after a one-off speeding mishap. A thorough search and inquiry about the company’s policy can be beneficial. If you’ve incurred a car accident, especially where you’re at fault, your rates may rise. In such a case, consulting with this Dallas accident attorney may assist. Unfortunately, there’s no way around reducing premium rates for prior accidents.
A potential resolution could be enrolling in safe or defensive driving classes to minimize the hike in premiums or lack thereof. Certain states and insurers accept this as evidence of a sincere effort to enhance driving habits and reward you credits. While this doesn’t eliminate the added premium for a violation or accident, it results in a net decrease in the overall premiums due.
Your Credit Status and Insurance Rates
A pattern noted by insurers connects low credit ranks with careless driving behavior. As a result, a low credit score will inevitably lead to higher insurance costs. Although it may be infuriating, people with low credit ratings often suffer from spending and saving issues. Accepting this fact and working towards financial stability is beneficial for both credit score and surprising benefits like lower insurance rates.
Impact of Your Occupation on Insurance Rates
Your educational background and job occupation can influence insurance rates. A pattern emerges linking low academic achievement with high accident frequency. Each educational milestone may contribute to reducing your rates, states Robert Hunter, director of insurance at the Consumer Federation of America.
Professional fields such as doctors, lawyers, teachers, and finance professionals are often privileged with lower rates. However, high-risk professions result in higher rates. For example, if you’re a race car driver or a delivery truck driver, your insurance may be extravagant. Driving conditions in your professional sector may pose a higher risk, like construction workers who commute on public roads between sites.
Geographic Impact on Your Insurance
Your location significantly impacts your insurance rates, with high accident-prone areas attracting higher charges. If you reside in an area notorious for reckless driving, you’ll automatically fall into the high-risk driver category. Conversely, living in a countryside area with fewer accidents may save you hundreds, if not thousands, in costs.
The legal duo Regis and Shane Mullen are partners at the Mullen & Mullen law firm, offering top-class legal services in Dallas for over two decades. With prior experience as a claims adjuster and litigation supervisor for renowned insurance companies, Regis Mullen has a well-rounded understanding of personal injury claims.
