As a vehicle owner, you might be surprised at a few factors that can affect your insurance premium. We all know about the basic factors such as car model, daily driving distance, risk, etc. But did you know that there are a few other factors that can affect your insurance premium which you probably didn’t know about?
Insurance companies consider a lot when offering an insurance premium. What are a few unknown, surprising factors? Let’s have a look…
This one may be obvious to many, but some people can forget that their driving experience, and how many years they’ve been driving, have an impact on their premium. Whether you’re a 25-year-old who’s had a driver’s license for 2 years and a clean record, or a 45-year-old who’s had a driving license for 20 years and has been in a minor accident, the years of experience could score you a discount.
The fact remains that, no matter your age, the longer you’ve had a valid driver’s license the less risk you are. Insurance companies will also do background checks on your driving record. This is to check for things such as accidents you’ve been involved in, fines, driving under the influence, and any violations on the road.
When insurance providers ask about modifications or improvements made on your car, they’re not just asking you about fancy upgrades. A common misconception many people have is that their car upgrades will result in a higher premium. That is not always the case! Car insurers want to hear about everything; from the personal, high-end upgrades to the security upgrades.
Anything that you do to your car which also shows that you take care of it and make sure it’s road-worthy is good for insurance providers to know. It may even help you get a lower premium!
Age and marital status
As we briefly touched on in the first point, your age plays a big role in your insurance premium. Whether you’re young or older, factors such as driving experience and eyesight are very important. They also consider your marital status as this determines the likeliness of someone else driving your car.
Insurance companies do ask about your background and your career history. This is not because they give better premiums to certain jobs per se, but rather because they need to know if your job involves a lot of driving around.
They also want to know where your vehicle is parked during work hours and what level of security or insurance your workplace provides.
Another major factor that insurers look at is your zip code. The area that you spend the most time in with your car says a lot about the safety of your car. Two people who are the same age, same gender, and have the same or similar jobs and the same car, can have two different premiums just based on their zip code.
If person A, let’s say, Jane Doe, has the same car, lifestyle, and job as person B, Annie Dee, but Jane lives in a safer neighbourhood, Jane would pay a lower monthly premium than Annie.
Family medical history
The last factor we are going to discuss, which is a surprise for many, is your family medical history. Most people are surprised by this one because they think medical history would only apply to medical insurance.
Car insurance providers are interested in your family medical history because it helps determine if you are a high-risk driver. If your family has a history of stroke, heart attacks, cancer, seizures, eyesight problems or any conditions that could make you a risk on the road, it’ll have an impact on your premium.
There are quite a few surprising factors that affect your insurance premium. However, the older you are and the longer you’ve had insurance, the more familiar you are with these factors.
To recap, factors such as your age, driving experience, car modifications, marital status, job, zip code, and family medical history all play an important role in your insurance premium. If you are not 100% sure why an insurance provider would be requesting certain information from you, ask them about it. Always ask questions if you are unsure of anything stated in your insurance premium policy. Insurance providers are more than happy to help to make sure you are comfortable and choose them as your insurance provider.
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