It”s impossible to argue that the cost of living is a hard thing to manage. It continues to rise, while most people are static in their jobs, and soon their income isn”t able to cover all of their expenses. For many people, this is just a reality of life, and it leaves them looking for anyway they can cut down on their expenses. Insurance is often one of the places people look to.


In order to save on any type of insurance, health insurance, auto, home, etc., it”s important to understand the factors that determine someone”s individual rates. No two people are the same, and their insurance isn”t the same either. Some people need coverage that others don”t, and insurance companies see some clients as bigger risks than others. Knowing that factors insurance companies look at will help individuals get the best rates possible for themselves.


Knowing the Factors


1. Age: Depending on the type of insurance, age can either hurt or help. With car insurance, young drivers are less experienced than older drivers and therefore have to pay more as they are a greater liability.
2. Gender: Whether we like it or not, men are treated differently than women in the world of insurance. Auto insurance companies see women drivers as lower risks than male drivers.
3. Lifestyle: Where someone lives, their marital status, how many kids they have, where they work, and their education level are just some of the lifestyle choices that insurance companies look at.
4. History: Family history as well as personal history in that area of insurance helps providers determine how much of a risk a customer is and how likely they are to pay their bills on time. Drivers with infractions on their record will naturally have to pay more than drivers with clean driving records.


Clearly there are some factors, like age and gender, that are out of our control, and there are some factors, like having a good driving record, that are in our control. Try your best to focus on the mitigating factors which lower rates as most insurance companies offer discounts to those with clean driving records or young drivers taking every effort to be responsible in the classroom.


How to Save on Insurance


First of all, don”t cut too many corners. Often, people will stop paying for insurance because they think it”s an easy way to save money, but that”s never the case in the end. Should someone ever need insurance, they”re going to wish they have at least basic coverage, whether that”s for their car, their home, or their own body. Furthermore, a lapse in coverage may negatively impact your future rates.


Another way to save on your insurance is a simple trick that many people never try: ask for discounts. Take the time to discuss your coverage with your insurance agent every six months. Additionally, playing hardball by presenting rates from other companies may also inspire your agent to offer additional discounts designed to keep people with the company.

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