5 Unusual Things that Raise Your Car Insurance Rates

It can be bad enough on your psyche to turn 50, but your insurance company may make you feel more like you're 80 when your rates rise, because now you're considered an "older" driver who's more prone to accidents [source: Casey]. Not every insurer raises rates for those age 50 and older, but it's certainly not an uncommon practice. Which is interesting, because according to stats from the National Highway Traffic Safety Administration, the safest drivers are between 64 and 69 years old [source: Woodyard]. Of course, there's a little more to it than that. While older Americans in general are very safe drivers -- they tend to wear their seatbelts, for example, and typically don't drink and drive or text and drive -- those in the 85-plus age group have more crashes per mile driven than any other age group [source: NHTSA]. Bottom line: if you're over 50, it may cost you.

Most car insurers consider those with poor credit ratings to be higher risk, and raise rates accordingly. Why? If your credit rating isn't great, you've probably missed a few credit card or mortgage payments, or perhaps written some bad checks. That means you're a less reliable insurance customer, as you may neglect to pay them at some point [source: Roberts-Grey].

However, the practice of looking at credit ratings to determine insurance premiums is a bit controversial. There's not a rock-solid link between credit scores and timely bill payments [source: Dykman]. Plus, insurance companies often neglect to inform their customers that credit ratings are a factor in setting their premium rates. If this is a concern for you, ask your agent whether the company looks at credit scores. If they do -- or if the agent hedges -- go elsewhere.

If you stop to think about it, this one makes sense. The more miles you drive each year, the more likely you are to get into an accident. So that great new job you're all excited about -- the one that's an hour from home -- may mean a steeper car insurance bill, since your insurance company is now at greater risk with you logging more miles on the road. There's no magic number of additional miles driven at which all insurers raise rates, so ask your company what its specific rules are in this regard if it's a concern [source: My Car Insurance Rates]. Remember, too, that if you suddenly start driving fewer miles, you may be able to lower your rates.

We know, we know -- you weren't behind the wheel! So how can your insurer penalize you for someone else's bad driving? Well, the truth is, your insurer's got nothing on you if your buddy steps up and pays for repairs himself. But if this pal of yours can't or won't pay, you'll have to file a claim with your insurance company. And once you file that claim, your rates will likely rise. Unfair, sure, but that's how the system works.

There is one silver lining. If you didn't give your friend permission to take your wheels in the first place, there's a good chance you won't be held liable for the damage. However, if the accident involved another vehicle, your car-nabbing buddy is uninsured and the resulting damage exceeds your policy limits, the owner of the other vehicle can approach you for medical expenses and any property damage [source: MSN Money]. The moral of the story: Choose your friends wisely. And, as Shakespeare wrote, neither a borrower nor a lender be.

Married people seem to have all the luck. Statistically, they live longer. Plus, studies show married people (and, incidentally, anyone with a solid credit rating) are much less likely to get into accidents or incur other driving violations than their single counterparts [source: J.D. Chapman Agency, Inc.]. Furthermore, if a married person does get into an accident, it's likely to be less costly than one a single person would be involved in. Not surprisingly, some insurance companies react to these statistics by hiking the rates of their single clientele, regardless of their driving history [source: J.D. Chapman Agency, Inc.]. Who's coming out on top in terms of insurers' risk assessments? Well, the lowest risk group, it seems, is comprised of married, middle-aged women who don't smoke [source: All Insurance Info].