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The Main Demographic Factors That Influence Car Insurance Rates

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“When determining the risk profile of a person, insurance companies use all info available. Insurers rely on official statistics to determine how likely is for a client to file a claim”, said Russell Rabichev, Marketing Director of Internet Marketing Company.


LOS ANGELES (PRWEB)

Demographic factors play a crucial role in determining a person’s risk profile. Insurance companies use various statistical data to predict how likely is a person to be involved in an accident and to file a claim. The most important demographic factors used by insurers are:

  • Age. This is one of the most important rating factors. Teen drivers, below the age of 25, are considered high-risk drivers due to their lack of experience behind the wheel. Senior citizens, over 70, are also considered high-risk. Age-related medical issues, hearing and sight which start to deteriorate and prescription drugs are the main reasons why seniors are risky drivers and policyholders. The Insurance Institute for Highway Safety (IIHS) found that drivers ages 30 to 69 are much less likely to be involved in accidents.

  • Gender. Statistical data shows that teen males are more likely to cause accidents than teen females of the same age. Things change in the case of senior drivers. Older females are more likely to be involved in minor accidents than their male counterparts.

  • Marital status. According to a study done by The National Institutes of Health, drivers who were never married or divorced have a significantly higher rate of motor vehicle crash injuries than drivers who were married. Married people are considered more responsible drivers, especially since they transport their spouses with them. Getting married is really beneficial for men, from a financial point of view. A male driver with a clean driving record who marries will get his rates nearly halved.

  • Occupation. Auto insurance companies correlate a person’s risk of accident and their profession, and they can adjust the premiums accordingly. For example, delivery drivers and journalists are on the road constantly and thus are more likely to be in an accident, whereas airline pilots often just drive between the airport and home, and don’t spend much time on the road. Others, such as police officers, paramedics and insurance underwriters are seen to be more careful than the average driver and receive better rates.

  • The area where the policyholder lives. This is actually a more complex factor. Numerous details regarding the ZIP code will be analyzed. Besides the state’s minimum, other elements like car theft rates, the cost to repair a car, road conditions, unemployment rate, and population density will affect the costs.

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