It is no secret that auto insurance takes into account many factors when giving a quote to a potential client. Most people are prepared for the ordinary issues considered such as age, car make and model and driving record; but are people aware of the factors considered that are not revealed to them when an auto insurance company gives them a quote. Things that have nothing to do with driving like credit history, education and occupation. Although this personal information has nothing to do with driving, they have an adverse affect on auto insurance premiums.

The reasons behind a car insurance company checking a person’s credit history are a bit eccentric and redundant. They believe that if someone pays their bills on time they are less likely to make regular claims. This kind of thinking is solely based on statistics and does not take peoples driving records into account. A person may not pay their bills perfectly over a long period of time, but they get paid and the person may not even file claims that often but will be given a higher premium based on their credit rating. That’s ridiculous. Driving records have become obsolete in this car insurance quote process; they would rather have a person with a high credit score that always is involved in car accidents.

What does occupation have to do with car insurance? The facts that auto insurance companies base their premiums on is speculative at best and provides no solid guidelines to follow. Car insurance providers claim that more stressful jobs such as judges, executives and business owners are at a higher risk, because they spend a lot of time on cell phones and may drive with more things on their mind than other professions. Scientist, actors and performers enjoy the benefits of lower car insurance coverage because they are considered to have jobs they love to do so they are less likely to file claims. This is an amazingly disillusioned way to set premiums by car insurance providers.

There is still one ordinary way auto insurance companies evaluate a person’s premium. Demographic is a more traditional issue to consider when car insurance providers give a quote. Inner city areas have more crime and there is a greater risk of the car getting stolen or damaged so a higher premium from auto insurance companies are rational. Rural areas have a lower population density, which means less people on the road. This would make a lower rate completely feasible.

When searching for car insurance providers make sure to shop around to find the lowest rate possible. Do not settle for auto insurance companies that use ridiculous criteria to set premiums. Be aware of malicious practices and occupation discriminatory criteria from auto insurance providers.

Categories: Car Insurance
Tags: Car Insurance, Car Insurance Premiums