So many factors could affect your insurance rates and since it’s impossible to discuss all of them in this issue, we will just discuss the common ones.
Well, if you must know, one of the most “poorly” paid people in the U.S. are the performing artists; underpaid or sometimes not even paid at all. Often unappreciated and unacknowledged, life is difficult. However, when it comes to auto insurance, they are enjoying much more reduced rates.
On the other side of the coin, corporate CEOs, managers and bankers who are raking thousands of dollars of annual income are often times the ones paying the highest insurance rates. Knowing that, probably, gives a little comfort to the rest of the working public. However, insurance companies are not doing it because of Karma. Insurance companies believe what their statistics have to say.
Who Pays Most and Why
Insurers use actuarial tables to do their calculations. This table is made up of complex mathematical formula that allows them to “visualize” the odds that a particular person is likely to face. This means that certain occupations will be likely to generate skyrocketing fees than the others.
Actually, aside from actuarial tables, you can readily tell who’s getting high rates. It’s called common sense and it’s pretty easy to accomplish. For example, people with power and glory spending much of their time tinkering business on Wall Street, naturally, have higher stress levels than those living in secluded and peaceful towns. High-stress lifestyle or work is a good indicator for insurers to charge them with such rates. Another example would be the judges, attorneys or people having similar job descriptions that usually work 16 hours a day.
Insurers would know that such stress levels create huge possibilities of driving into an accident. The fact that these people don’t just drive the “usual” car models, but expensive ones – insurance cost becomes far more expensive.
Who Is Paying the Least Insurance Cost?
If you’re one of the persons described above, now you know why your premium rates are high. Unless, you change your job, which I doubt you would, you will be likely to get stuck with these rates for a long time.
We’ve mentioned performing artists being underpaid or unappreciated, which means it’s impossible for them to purchase expensive cars. One reason why their insurance rates are low is the fact that these people know that making a living is based on their health, and take good care of it, while driving is the wisest thing to do. Again, the odds of getting involved in a car accident are relatively low and the cheap rates are not because of some karmic balance.
It’s also possible to get some discounts if you are a scientist, who contributed to the society on a whole. Since you can’t become a scientist, you can be a detailed oriented person like a scientist, while driving, because insurers believe that this particular trait can be exercised on the road. It’s also possible that pilots get price discounts on car insurance, knowing that every time they carry out their duties, their life depends on their performance.
