Many people are still struggling financially in the slow recovering economy. Some of them have been forced to withdraw money from their emergency funds to cover costs. However, it is best to leave these alone for unexpected expenses. One way people may have seen their expenses go up is rising insurance premiums. There are many things that you can do that could potentially see your premiums spike.
This is a bad habit that many people start in their teens. Not only does it have a negative effect on your health, it can cause your life insurance premiums to increase, according to Insurance.com.
“Smoking absolutely raises your life insurance premiums,” Maureen Leydon, vice president and chief underwriter at MetLife, told the source. “Depending on your overall risk profile, your rates could more than double. If you have other health risks in addition to smoking, your rates could go up even more.”
Additionally, not smoking could qualify you for some discounts. Jeff Reinig of Farmers Insurance told the news source that they have offered up to a 5 percent discount for non-smokers.
Bad Driving Habits
Having bad driving habits can also negatively affect your insurance premiums. Getting traffic tickets or being a risk for accidents could potentially increase your auto and life insurance policies. Depending on the types of violations and how often you get them, Reining said that car insurance rates can go up from 10 to 100 percent. Citations that result in the largest increases include drinking and driving. However, if you get into an accident that wasn’t your fault your rates may not go up at all.
Bad Credit History
A troubled credit history can have a negative effect on many of your finances, including insurance premiums. When a provider sees a low credit score they may think your are more likely to make a claim. This can influence your premiums on all types of insurance – home, auto and life. Depending on the severity of your credit history, bumps in premiums can range widely.
Having A Pool
There are many features you can have in your house that will rise your home insurance. One of them is a pool. With drowning being a leading cause of death among children, insurers will require a higher premium because of liability. The best way to reduce increases is to protect the pool area and make it safe.