Does Being Rich Mean You Have Lower Auto Insurance Rates?

3 minute read

Man, it’s tough to be wealthy these days. Wealthy people have to pay higher property prices in order to live in the fanciest neighborhoods. Because they have an image to protect, these affluent individuals must also dress in expensive designer clothing, as well as invest in rare art, vacation condos, opulent yachts and other trappings of an extravagant lifestyle. One area where wealthy people may see a price break, however, is in lower Auto Insurance Rates.

Why Does More Money Equal Cheaper Auto Insurance?

A recent study shows multiple examples of a wealthier driver who has been involved in an auto accident receiving lower rates from Auto Insurance companies than their cash-strapped counterpart with a spotless driving record. However, the fact of the matter is that insurance companies use criteria that naturally favors drivers in higher-income groups, such as:

  • Zip Code. Living in a neighborhood with lower crime rates and theft means that your vehicle is less likely to be stolen or vandalized. That means a lower Car Insurance premium.
  • Annual Mileage. If you’re wealthy enough, you probably live somewhere that doesn’t require you to commute far every day because you can afford somewhere close to the office. The less miles you drive, the lower your Auto Insurance rate may be.
  • Age. By age, we mean driving experience. There is a correlation between age and wealth. Additionally, there is a correlation between older drivers (say, between 40 and 70 years of age) and being less risky than younger ones (those between 16 and 39 years old) to insure.
  • Continuous Coverage. In many states, those who can afford to pay Auto Insurance premiums in full and/or remain covered pay less than someone who is on a tighter budget and might let their coverage lapse before renewing it at a later date.
  • Marital Status. Statistically speaking, married couples have more wealth than single people, and they’re also safer drivers than unmarried folks.

You Don’t Have To Be Loaded to Get Cheap Car Insurance

Now, there is some good news for the non-millionaires out there. You can still qualify for low Auto Insurance rates. That’s because there are several factors that have little or nothing to do with income. Some of the most relevant factors when determining Auto Insurance rates include:

  • Driving Record. The fewer collisions and traffic citations you’ve amassed in your driving career, the better your rates will be.
  • Annual Mileage. Simply put, the less you drive, the less risk you are of getting into an accident. So, you won’t pay as much for Car Insurance.
  • Deductible. This is the amount of money you agree to pay on a claim before your insurance coverage kicks in. The higher you set your deductible, the lower your premium will be.
  • Car Make & Model. If you drive a budget-friendly and/or safe car, your premiums will be lower because you’re less likely to file a pricey insurance claim either for injuries or for high-dollar automotive replacement parts.

Your Key To Affordable Auto Insurance

Finally, there’s a tried-and-true method of saving money on your Auto Insurance that works for anyone. All you must do is shop around for the best rates. Since no two auto insurers are alike, they’ll probably offer you vastly different coverage quotes.

AIS Insurance lets you receive multiple quotes from several auto insurance companies, which allows you to compare policies and prices side by side. As a result, you can obtain the coverage you need at an affordable price – even if you’re not filthy rich. So contact AIS Insurance today for a free quote!

The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.