Do you think you know everything there is to know about factors affecting auto insurance rates? If your answer is yes, then you are probably paying more than you should because there are many wrong beliefs people hold about these factors. Here are some of the truths you know to lower your rates further:

A Low Credit Score May Impact You More Than DUI

Both credit score and a driving under the influence (DUI) conviction affect your auto insurance premiums. Many people believe that a DUI can significantly raise their rates; after all, it's a traffic offense, and auto insurers love those who don't engage in risky road behaviors such as driving while drunk. This is true, but it now seems that having a low credit score (which is not a traffic offense) may have a greater impact on your rates than getting a DUI conviction. Therefore, in addition to driving only when sober, settle your bills on time if you want to pay affordable premiums.

Males Don't Always Pay Higher Than Females

Another erroneous belief you may hold is that male drivers always pay higher rates than their female counterparts do. After all, men are perceived to take more risks, be more aggressive on the road, and be more likely to get involved in accidents. However, this is only true for some ages. According to statistics, only women younger than 30 pay lower rates than men of the same age group. Between age 30 to 56, men actually pay slightly lower rates than women do. Therefore, don't rely on your gender to enjoy low insurance premiums.

There Is Nothing Like "Full Coverage"

The last truth you should know is that there is no universal definition or agreement on what "full coverage" means.. What may be full coverage to your colleague may not be full coverage to you. Even if you think of full coverage as a combination of liability, collision, and comprehensive coverage, it may not be "full" in the sense that you may still be missing some essential protection. For example, the combination above will not help you if your car is totaled and you owe more on it than it's worth at the time of the accident; for this you need gap insurance.

In addition, full coverage doesn't mean buying all the options in the market; you may lose money that way since you may not need some of the coverage. The key to optimizing your rates and protection is to customize your coverage by getting all the protection you need for the best available price.

Therefore, the big truth is never to assume you know everything when it comes to auto insurance rates. Always question everything, dig deeper behind every "truth" and get to know why insurers use the factors they do to set rates. Use the information to your advantage and lower your rates.