NEW YORK (MainStreet) Some 43% of Americans mistakenly believe their income affects how much they pay for car insurance, according to a new insuranceQuotes.com report.
Consumers also incorrectly believe that their employment status affects their car insurance rate with only 36% of Americans who know that it doesn't.
Car insurance providers consider factors that affect a consumer's risk level such as their age, gender, credit history, marital status, education level and other information.
"Drivers can control most of these factors," said Laura Adams, senior analyst at insuranceQuotes.com. "In addition to maintaining a good driving record and credit history, drivers should consider all available discounts, including pay-as-you-drive programs. They should compare rates from at least three carriers annually."
More eight in ten people know that car insurance companies consider criteria such as the make and model of the vehicle with 84% who provided the accurate response, the age of the car or 86% are aware of this and the age of driver or 88% who know this.Only half of consumers are aware that your gender, marital status, credit history, where you live and if you own a home are also factors that insurance companies consider when setting their rates. The survey found that 54% are aware that your gender is one piece of the equation. On average, a 20-year-old man pays about 25% more than a 20-year-old woman, but only one in four Americans know this. Half of Americans say it's fair that insurance companies typically charge young men the highest car insurance rates, while 43% think it is discrimination.
Whether you live in the city or suburbs is another factor with only 63% who recognize this. Some 58% of Americans are mindful their marital status impacts car insurance rates, and 53% know that owning a home is another consideration.