Here’s what I wish EVERYONE knew about car insurance.

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#7. Your car is a very small portion of your premium calculation

You may have a 2004 Camry, but that doesn’t mean you’re not a terrible driver. In fact, you’ve had 2 accidents in the last 5 years and rack up 15,000 miles per year. Plus, you live in Miami, so you’re probably going to get into even more accidents. Your rates will be high if your credit score is low.

In many states and for many companies, your credit score is considered a major factor in determining your rates. A low credit score indicates that you are not good at paying bills on time, which will result in higher rates.

#6. Embrace telematics if you’re ok with data collection

With the advent of apps that track your driving habits, many insurance companies are now able to more accurately adjust your rates. Examples include Snapshot and Drive Easy.

If you’re a good driver, you’re likely getting a discount just for signing up. And that discount can go even higher at your next renewal. But if you drive like a bat out of hell, obviously don’t opt for this.

When it comes to car insurance, your experience may vary depending on the company. My old company was good, but others can be pretty crap and have a high chance of raising your rates. Do your research to find the best option for you.

#5. Discounts are mostly BS

I blame this on insurance commercials that talk about discounts like they’re going out of style. In fact, I recently had a deaf guy (using an interpreter) ask if we had a deaf discount.