Everyone pays different rates for their car insurance. Providers use many factors to determine your level of risk, which, in turn, affects how much you’ll pay to remain covered. There are obvious factors, like your driving history, experience, and age. However, insurance companies take many other items of personal data into account to determine your premiums. 

How Are Car Insurance Premiums Determined? 

1. Credit Score 

Insurance companies employ non-driving factors. While some states do not use it, North Carolina does consider FICO® credit-based insurance scores when establishing rates.  

It has been observed that people with poor credit tend to file more expensive claims more often than people with higher credit scores. So, the lower your score is, the higher your rates will likely be. 

2. Marital Status

Unmarried drivers are more likely to have accidents on the road. Married couples are considered safer drivers. If you’ve recently married, reach out to your car insurance agent, since many plans offer discounts to married drivers. 

3. Gender

Particularly in teen drivers, there is a difference in rates along gender lines. Typically, teenage girls are considered safer drivers. They’re less aggressive and take more precautions while teenage boys are more likely to get into car accidents. 

In general, teens have higher rates than those in their 20s and 30s. However, many insurance providers offer incentives to younger drivers. Teens in North Carolina can take defensive driving or traffic safety classes, which will lower their premiums. 

4. Occupation

When calculating your premium, providers consider what you do for a living. Specific jobs tend to increase the risk of auto accidents occurring. Traveling sales representatives, delivery drivers, truckers, and taxi drivers are considered a higher risk. Lower risk professions include paramedics, police officers, and insurance underwriters. 

5. Location

Your state and zip code are deciding factors for your car insurance rates. Since North Carolina makes Personal Injury Protection (PIP) coverage optional, your rates may be lower than those in states where it’s mandatory. 

Living in a cosmopolitan area with a high population density will increase your rates while living in a residential or rural setting will decrease them. 

Your neighborhood also matters. Providers will raise your rates if you live in areas prone to flooding and landslides. Living in a neighborhood with high theft and vandalism statistics will also increase your premiums. 

Since 1953, the North Carolina Farm Bureau Insurance Group® has provided comprehensive car insurance policies at affordable rates. Whether you’re a new driver starting out or an experienced one with a new vehicle you need to cover, their agents will match you with a policy that’s best suited for your needs. Dedicated to your safety, they also offer home, health, and life insurance coverage. For more information, visit their website. If you’re in the Matthews, NC, area, call (704) 841-8700 for an appointment.