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How Insurance Premiums are Determined

If you are a woman, you probably will pay more than a man for health insurance coverage in the open marketplace. If you are a man, you probably will pay more over your lifetime for auto insurance. Seniors usually pay more for car insurance than when they were middle-aged. 

This may seem like discrimination, but you probably can understand the reasoning behind some of these pricing decisions. Some personal factors that affect insurance premium pricing include:

Infographic: Insurance premium factors

Reduce Your Premiums

You cannot control some insurance pricing factors, but there are some that you can (and should) to help lower your premiums. Kiplinger reports some of the following factors that can raise your premiums. 

Your Weight

  • With life insurance in particular, your body mass index (a measure of body fat based on your weight and height) may factor into your premiums. Calculate your BMI using this calculator from the U. S. Department of Health and Human Services.

Your Hobbies and Travel

  • If you take on risky hobbies or if you travel to risky areas around the globe, you may not get preferential rates for life insurance. 

Ultimately, talk to your insurance agent. Simply asking for a discount or choosing a higher deductible can save you money.

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