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The 3 Factors that Cause Unexpectedly High Rates

Every driver knows that safer driving is usually accompanied by lower auto insurance rates. It’s not uncommon knowledge that tickets, accidents, and other incidents can lead to higher insurance premiums, but the process is more complex than many people might think. Did you know that your age, gender, and marital status can effects your rates in many states? It’s true, and all across the country, insurance companies are checking scores and ratings of all kinds, trying to determine which clients are high-risk and which are low-risk.

Most states require some form of car insurance, and eventually, almost everyone will need to make this purchase. Luckily, knowing which perimeters are checked and which documents are taken into consideration can make you a smarter car insurance buyer, so read on to learn more about the three biggest reasons you might be paying too much for your liability insurance.

Your Credit Score

There are a lot of ways for an insurance company to assess your history of reliability, and one of the first places they check is your credit score. A customer’s ability to hold up their end of the transaction is extremely important to insurers, and if you have a credit score that reflects your financial reliability, your insurance agent might be able to lower your rate. Not sure your credit score is all that important? It could make a larger impact on your insurance rates than a DUI, and in Florida, the difference is over $1,500 annually. Credit-based risk assessments aren’t legal in all states, so be sure to confirm whether or not your state allows this practice.


Many insurance companies reward long-time customers with discounts and special offers, but loyalty policies differ so much from company to company that you can end up paying more just for being a loyal customer. In the middle are companies that have few to no loyalty incentives, so know your insurance company’s policy and ask your agent if you have any questions. Which state you live in and which insurance company covers you can both have a profound impact on loyalty programs, with some insurance companies offering incentives in one state and penalties in another. Some of the country’s biggest insurers have disadvantageous loyalty programs, and you may be missing out.

An Algorithm

Insurance companies across the country are trying new ways of increasing profits, but some companies are willing to go further than others. Taking into account complaints, personal information, and customer archetypes, some insurance companies will determine how hard it will be to “scare you off”, increasing prices as much as an individual customer will tolerate. This practice is banned in a total of six states including California, Florida, Maryland, Ohio, Vermont, and Washington, but it’s important to keep an eye out for similar practices.

Shopping for auto insurance in California? Give us a call or click today for more information on insurance policies for your home, vehicle, and family. Our dedicated staff is standing by to help you find an auto insurance policy with a price that fits you.

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