Car insurance premiums seem to be on the rise. It seems that no matter what situation someone might be in, it seems to be a justification for a rate increase. Influencing points include the type of vehicle someone drives, what age someone is, or even gender. There are, however, certain car insurance factors that cannot affect car insurance rates that should be realized to offer some sort of peace of mind from the rising costs of living.
The first of the car insurance factors that cannot have an impact on car insurance premiums is income level. How much money someone makes statistically means no difference to an underwriter of an insurance company. People of all income brackets can expect to pay the same rates if because the measuring stick is the same whether they are at poverty level or extremely wealthy. This doesn’t apply though the same to where someone resides. There is influence in the rates someone pays based on which area they live in, but it’s not because of income but because underwriters know certain areas are more congested and are less regulated in traffic.
Another of the car insurance factors that won’t make a difference in car insurance premiums is health. People that are unhealthy will pay the same types of rates that the healthy are paying. This means if there is a handicap or debilitating condition, then consideration is not given in the car insurance premium. This won’t apply to the actual vehicle being driven though, just to the driver. So if there are special amenities made to make a vehicle more accessible to a driver or passengers, replacement value of the vehicle increases the risk costs to the company. The actual replacement value of a vehicle does increase car insurance premiums, but the health condition of the driver and passengers has no bearing on rates.
A final car insurance factor that is insignificant in car insurance premiums is intelligence. If a driver is licensed, then there is equal opportunity on the roads as far as how much someone is going to pay for insurance. This means a rocket scientist can very well pay more in car insurance premiums than a high school dropout if that is the primary influencing factor. There are discounts available for those that are students or part of special organizations, but this is not based on someone’s IQ, but on where an underwriter finds the risk based on activities that rate behavior.
Three car insurance factors that cannot affect the amount someone will pay in car insurance premiums are income, health or intelligence. There may be other factors that do cause rate variance with these three areas, but they’re based on other unrelated statistics.
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