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It’s Good to Be Rich: Why Wealthy Drivers May Have Lower Auto Insurance Rates

    3 minute read

    Man, it’s tough to be wealthy these days. Rich folks have to pay higher property prices in order to live in the toniest neighborhoods. Because they have an image to protect, these affluent individuals must also dress in expensive designer clothing when out in public. Plus, they are expected to invest in rare art, vacation condos, opulent yachts and other trappings of a lifestyle befitting the well-heeled. One area where wealthy folks might see a price break, however, is in paying lower rates for auto insurance than other drivers.

    More Money In The Bank = Less Money For Auto Insurance

    Some insurance watchdogs are concerned about this perceived favoritism toward richer drivers by auto insurers. A recent study shows multiple examples of a wealthier driver who has been involved in an auto accident receiving lower coverage quotes from insurance companies than her cash-strapped counterpart with a spotless driving record.

    But the fact is that insurance companies use criteria that naturally favors drivers in higher-income groups. These include:

    • Living in upscale neighborhoods – if these areas have lower crime rates, then their residents’ vehicles are less likely to be stolen or vandalized.
    • Driving fewer miles – if people live and work in a large city instead of residing in a faraway suburb and facing a lengthy commute every day, their annual mileage will be less.
    • Being older – there is a correlation between age and wealth, and older drivers (say, between 40 and 70 years of age) are less risky drivers than younger ones (those between 16 and 39 years old).
    • Continuously maintaining insurance – In many states, those who can afford to pay auto insurance premiums and remain covered will pay less than someone who is on a tighter budget and might let their coverage lapse before renewing it at a later date.
    • Being married – 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, some good news for the non-millionaires out there: you can still qualify for lower auto insurance rates. That’s because there are several determinants which go into setting insurance premiums that have little or nothing to do with income. Some of the most relevant factors are:

    1. Your driving record. The fewer collisions and traffic citations you’ve amassed in your driving career, the better your rates will be.
    2. Annual mileage. Simply put, the less you drive, the less risk you are of getting into an accident – which means that you won’t pay as much for auto coverage.
    3. Your deductible. This is the amount of money you agree to pay on a claim before your insurance coverage kicks in – and the higher you set your deductible, the lower your premium will be.
    4. Your vehicle. If you drive a budget-friendly and/or safe car, truck, or SUV, 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).

    You don’t have to be well-to-do to pay lower auto insurance premiums.

    AIS Insurance: Your Key To Affordable Auto Insurance

    Finally, there’s a tried-and-true method of saving money on your auto insurance: shopping 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.