It Adds Up

It Adds Up

Everyone who owns a car needs car insurance, but it can be a difficult concept to understand. How, for example, do agencies come up with the pricing? You’re likely going to be surprised by some of the factors that are considered. Here are some of the lesser known items.

Where You Live

Your car insurance premium will vary depending on where you live. As Marketwatch reports, if you live in Michigan, you’re paying about 64 percent more in premiums than the national average. There are a few reasons why premiums are different from state to state. Esurance says insurance agencies consider the weather (it snows a lot in Michigan), accident rates, property crime and more.

Credit Score

Unless you live in California, Massachusetts or Hawaii, your credit score impacts your car insurance rate. Those are the only states that don’t allow agencies to check credit before determining your premium. Studies have shown that consumers with higher credit scores cost agencies less overall, so agencies have taken notice. The higher your score, the lower your premium. In other words, this is yet another reason to make sure your credit score is as high as possible.

Your Questions

You know that making a claim will raise your premium, but did you know even asking about a claim could affect your costs? Every call you make to your insurance agent gets logged. Those logs are then accessible to any agency, and they may take into account everything on them — even asking about a claim — when calculating your rate.

Articles
Set Financial Resolutions for the New Year
Set Financial Resolutions for the New Year

Eighty percent of people fail to actually achieve their New Year’s goals every year, according to U.S. News & World Report. ...

Read More

Move Your Mind
Move Your Mind

It’s easy to procrastinate when it comes to your financial goals. There’s always something that comes up, something that needs th...

Read More

A Season for Giving
A Season for Giving

...

Read More

Vital Limits
Vital Limits

If you have millennial-aged children, don’t get too attached to your empty nest. It may not last. According to a study from the P...

Read More

Seasonal Scams
Seasonal Scams

Tis the season to get scammed. The holidays bring many things, including con artists looking to score off your mistakes. Here are...

Read More

Give Gifts That Give Back This Holiday Season
Give Gifts That Give Back This Holiday Season

The holidays are the season for giving, of course. But they’re also the season for giving back. As you do your shopping this sea...

Read More

Gift Card Grifters
Gift Card Grifters

If gift cards are on your holiday shopping list, be wary of what you buy. According to CNBC, scammers are increasing their attack...

Read More

Gifts That Keep On Giving
Gifts That Keep On Giving

Despite all of the holiday discounts, it’s easy to wind up feeling that you’re spending so much on gifts that don’t matter. Sure,...

Read More

On Your Marks, Get Set, Shop
On Your Marks, Get Set, Shop

Black Friday may still be a few weeks away, but we’re already starting to see deals rearing their heads. Veterans of the day kno...

Read More

Website Terms of Service

Please read these "Website Terms of Service" carefully before using SavvyMoney Checkup ("site", "website"). Accessing this site, or making this site available to any third party, indicates that you have read and accept these terms.

  1. Materials. Materials in this site are copyrighted and all rights are reserved. Text, graphics, databases, HTML code, and other intellectual property are protected by US and International Copyright Laws, and may not be copied, reprinted, published, reengineered, translated, hosted, or otherwise distributed by any means without explicit permission.
  2. Links to Third-Party Sites. Linked, third-party sites from website are not under the control of the Licensor. The Licensor is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites.
  3. Confidentiality of Codes, Passwords and Information. Licensee agrees to treat as strictly private and confidential any username, password, user ID, and all information to which you have access through password-protected areas of website.
  4. Maintenance. Licensor shall provide Licensee any new, corrected or enhanced version of the site as it becomes available. Such enhancement shall include all modifications to the site which increase the speed, efficiency or ease of use of the site, or add additional capabilities or functionality to the site, but shall not include any substantially new or rewritten version of the site.
  5. Limitation of Liability. Licensor shall not be responsible for, and shall not pay, any amount of incidental, consequential, or other indirect damages, whether based on lost revenue or otherwise, regardless of whether Licensor was advised of the possibility of such losses in advance. In no event shall Licensor's liability exceed the amount of license fees paid by Licensee, regardless of whether Licensee's claim is based on contract, tort, strict liability, product liability or otherwise.