In high school, car insurance is cheaper if you get good grades.
When you turn 25, your premium changes again.
Fair enough, but some of the criteria they use are a little unexpected.
Even worse, widowed drivers are often charged more, too.
The CFA conducted a study in 10 cities, getting rate quotes for minimum liability insurance only.
They assumed the driver was a 30-year-old female with no history of accidents or violations.
And the difference in injury rates was only about one percentage point.
Misguided or not, its a fairly common practice.
However, one thing theywillpay more for than homeowners is car insurance.
Check out the numbers for yourself.
Heres how muchmore renters pay for car insurance in 10 different cities.
Geico might charge more if youre single, but they dont seem to jack up prices for renters.
Liberty Mutual, on the other hand, charges renters quite a bit more.
According to NPR, insurers use software to track your spending habits.
Then they set your rate based on that data.
Only the insurance company knows the index.
Clients may see a loyalty discount on their premiums but Hunter says it may not be what it seems.
Theyll give you a discount for loyalty, Hunter says.
But, theyll give you a 10 percent discount after theyve raised your rate 25 percent.
Worse, theyll give you a phony discount for your loyalty.
You just have toshop around for insurance.
Either way, where you live and park your car determines your rate, too.
Obviously, combating this isnt as easy as move to a better neighborhood.
Thats not exactly realistic for most people.
However, lets say youre currently on your parents policy, but youre planning to move out soon.
Most insurance companies encourage young people who move into separate residences to obtain their own car insurance policies.
However, the definition of separate residence may vary between insurance providers.
You Didnt Go to College
Yep, your educational background affects your auto insurance rate, too.
Particularly, if you didnt go to college, some carriers might charge you more.
Why a higher premium?
Education is one such factor, although controversial.
TheDMV.org offers one suggestionfor working around this.
You might save some cash.
These are a few unexpected lifestyle factors that affect your car insurance rates.
It might not be fair, but, unfortunately, thats the way it goesfor now.
Thankfully, consumer groups like the CFA are investigating and working to change this.
Of course not; that would be silly.
Illustration by: Sam Woolley
get in touch with the author at[email protected].
