Did you know…car insurance companies consider demographic characteristics to calculate risks?
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What are demographic characteristics?
Whether in car insurance or anything else, demographic characteristics group people into segments. In car insurance, this means that car insurance companies consider individuals as part of a population segment. Insurers group people into segments. For instance, segments could include married males, females under age 20, homeowners, or currently insured drivers. The characteristics of the segment affect the overall rate.
Examples of demographic characteristics
Examples of demographic characteristics help bring understanding. For instance, even though people under 25 and people over 70 represent two segments, both groups are statistically more likely to have an accident. Consequently, insurers often set their rates a bit higher on average than the rates for ages in between them.
Here’s another example: young men are historically and statistically more likely to have accidents than women of the same age. Therefore, a young man often pays higher premiums than a young woman of the same age with the same driving record. These are demographic characteristics. Married people, on average, present a lower accident risk than single people. Responsible students with a B average or above often receive a discount for keeping their grades up.
Regardless of the demographic, poor driving records raise car insurance rates. Regardless of your demographic, Solo Insurance gives you our best rate every time, without additional fees. 800-207-7656
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