Homeownership is frequently used as a determining factor when calculating a person’s premium for Auto Insurance Policy in Lake Charles LA. Even though there’s no direct correlation, there’s a belief that homeownership carries with it a level of responsibility and a lower risk in other areas. The results of various surveys do show a connection between homeownership and claims numbers, although the reasons for the connection are debatable.
As a Person Ages, The Effect Diminishes
When a person’s age is considered, the discrepancy between a renter, a homeowner and a person living at home with parents is the biggest among those aged 18-24. Young adults living at home field 24.4% of insurance claims, compared to 19.7% of renters and 17.6% of homeowners.
Age-related effects decline over time, but they remain up until retirement. For instance, in people aged 45-54, those living at home field 15.2% of claims. Generally, renters filed far more claims than homeowners filed, and the five highest differences were in geographically diverse states. In four states, it was found that homeowners filed more car insurance claims than renters filed.
Understanding the Correlation Between Age, Homeownership and Auto Insurance Premiums
It has been suggested that the higher income and greater financial stability of homeownership may play a role in the lower incidence of car insurance claims, but it would be foolish to assume that it’s always true. It would be interesting to see the connection between responsible homeownership, renting and car insurance; in other words, responses from those with foreclosures, late payments and other mistakes would be discarded. However, that was beyond the scope of the research.
Given evidence of the connection between homeownership and the rate paid for car insurance, most insurers aren’t likely to change their opinions on driving risk and responsibility any time soon-;although they may make slight adjustments based on local data and customer-specific information.
A person’s age and their homeownership status can have significant effects on the rate they pay for car insurance. For the lowest rates possible, people can keep a clean driving record and pay their mortgages or rent payments on time. Curtis Insurance can work with the customer to find the lowest possible premium for an Auto Insurance Policy in Lake Charles LA.
