Save money on insurance

Insurance lowers the financial impacts of life’s activities. If you like to live on the edge, your insurance could be quite expensive. Though it seems discriminatory, gender and age are the basis for many insurance pricing systems. For example, men under 25 usually pay more for auto insurance than young women. Women are statistically less likely than men of the same age to be involved in an accident, drive as many miles or own expensive-to-insure cars.

There are some factors you cannot change about yourself, but you have more control over other things, such as your credit score, driving record, education level, weight, hobbies and travel that can affect insurance premium pricing.

Credit Score
Some states will not let insurance companies use credit scores for setting premium rates. In states where it is allowed, lower credit scores can mean higher rates.

Car Make and Model
A car with more horsepower can be more expensive to insure. Raising comprehensive or collision deductibles on an older car may help lower your premiums.

Driving Record
A high number of incidents can increase your car and life insurance costs. Controlling your speed and never driving under the influence may reduce your premiums.

Weight
Your body mass index (BMI), a measure of body fat based on your weight and height, may factor into your life insurance premiums. Calculate your BMI using this calculator from the U. S. Department of Health and Human Services. Links to an external site.

Education Level
In general, higher levels of education help lower your premiums.

Hobbies and Travel
If you take on dangerous hobbies or if you travel to risky areas around the globe, you may not get the best rates for life insurance.
Talk to your insurance agent. Ask for discounts and choose higher deductibles to save money. Complete an annual insurance review and shop around. Loyalty to an agent or company does not necessarily mean lower premiums.

 

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