7 Things That Make Your Insurance More Expensive

In a lot of ways, you do have some control over the cost of your insurance. It’s truly the choices that we make in our lives that affect what insurance companies will end up charging up in the long run. Here are some of the factors that go into determining your premiums, and which factors will cost you more.

Car Insurance

  1. Your Zip Code: insurance companies will, understandably, determine your risk based on the area where your car spends most of its time. They’ll use the statistics of how many cars have been stolen, criminally damaged or involved in accidents in your area to come up with the price you’ll pay for insurance. However, moving to a new place isn’t the only way to save on your insurance premiums. Here’s some advice from Which? News:

    Security measures such as keeping your car in a garage or on a drive rather than parking it on the street, and fitting it with an immobiliser or alarm, should help minimise the risk to your vehicle.
    Provided you make your insurer aware of the security steps you’ve taken, they should also help mitigate any effects your postcode might have on your premium.

  2. Your Credit Score: your credit score is an important number when it comes to saving money. If a car insurance company sees that you are a financially responsible person (and have a high credit score), chances are your rates will be a bit lower. If you need to quickly “fix” your credit score, take a look at some tips for that.
  3. The Type of Car You Drive: if you haven’t yet purchased the car you’ll need to insure, you’ll want to do some research first. Before you buy, get some insurance quotes for the type of car you’re looking to get to see if the insurance for it is within your price range.

Health/Life Insurance

  1. Smoking: this is an easy one. Smokers will always be charged higher insurance premiums because the act of smoker makes you a higher risk to cover. If you used to be a smoker and still can’t get lower insurance coverage, take some advice from Money Talks News:

    Some studies report that former tobacco users will always have a higher risk of cancer and other ailments, even if they never use tobacco again. Many plans provide coverage for smoking-cessation products, including nicotine patches or nicotine gum, if prescribed by a doctor. This coverage benefits both you and the health insurance company because when you quit using tobacco, your health risks begin to decrease immediately.

  2. Your Body Mass Index: since people who have a high BMI can develop diseases like diabetes, sleep apnea, heart and joint problems, their premiums tend to be much higher than those with a normal BMI. So simply taking some time to work on your body will give you added health benefits and potentially save you some cash.
  3. Where You Live: insurance companies have information and statistics on health trends in your area, so depending on their findings, your premium could end up being higher than it would be in another area. They’ll take things like the health of people in your area and the cost of health care services in your area to determine your premium. So if you’re considering a move, don’t forget to do some research on health insurance if you’ll need coverage.
  4. Your Job/Hobbies: if your job or hobby requires you to be in dangerous situations, i.e. extreme sports or being around hazardous chemicals, you’ll be a higher risk in the eyes of insurance companies. Different companies view “dangerous” occupations in different ways, however, so be sure to shop around.

Additional sources: Car Insurance Comparison, Saving to Invest, Money Crashers

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