How Insurance Companies Look At Singles

For insurance companies safety is everything. Not because they really care about the person, but because they want to have clients that are less likely to file an insurance policy claim. Insurance claims every year can cost a company millions, which is why they prefer to have clients that are considered as low risk.

What are low risk clients?
Low risk clients are those people who are less likely to get involved in an accident or anything that may cause harm to one’s health and property. These people are desirable for insurance companies because they rarely file insurance policy claims. Low risk clients, although they pay lower premiums than high risk clients, are in fact more profitable for insurance companies as they almost never get to use their coverage benefits.

Singles are red flags
Single people are considered by insurance companies as high risk clients for a lot of reasons. One is that they are very active. Single people tend to go out to parties, on dates, and do a lot of crazy things. This makes them susceptible to car crashes, theft, accidents, DUI, etc.

Another reason why single people are high risk is because they are more likely to share space with someone else. Oftentimes singles share their apartments with a friend or two. Though it may sound farfetched, sharing an apartment is considered by insurance companies as high risk because it is more likely that you will be sharing your car with your roommate as well. Although it may not be true at all times but the possibility is still there and insurance companies would not like to risk losing money over an undesired mishap.

Your choices makes all the difference
There are ways in which you can lower your insurance cost and these can be determined by a lot of factors. Mostly they all boil down to your choices or personal preference. For instance, people who choose to have a car garage that is not attached to their house or is located a few feet away from the house will certainly pay lesser for a premium coverage. Whereas people who prefer to have no garage at all will certainly pay more.

Buying a sports car rather than a family sedan will certainly require higher premiums. Your hobbies as well as your travel plans will also affect your insurance rates. If you are into extreme sports like surfing, skateboarding, drag racing or even open ocean fishing, you would be charged higher rates. But if you were doing chess, gardening, video games, etcetera then your insurance rates wouldn’t be as high.

If you are single and you want to have cheaper insurance premiums then it is important that you shop around for the best deals offered by different companies. Being a bachelor may have lots of drawbacks, but it will sure have its pros as well. Don’t rush yourself into purchasing a coverage that is ridiculously expensive. Take your time to look at insurance coverage that tailors to your needs.

Make sure that you pay only for the coverage that you need and nothing else. Other companies would slap you with a coverage that may not be applicable for you. It will be a total hassle if you found out that you were paying for an insurance you could not use when the need arise.

Take your time to read the fine print, ask questions, and clear all issues. Otherwise, you might end up paying for something you don’t really need. Being careful and making sure that you get what you need is one way for you to even out the odds for paying a higher premium on your insurance.