When it comes to health and car insurance, the cost of coverage can be quite high. But there are ways to make it more affordable. Insurance companies take into account a variety of factors when reviewing your application for coverage and deciding on premium costs. As an expert in the field, I'm here to explain the five most important ones.
Age: Generally speaking, health insurance premiums are more affordable when you're younger. In fact, according to Healthcare.gov, older people can pay up to three times more than younger people for coverage.
Location:The cost of living in your area is a major factor in determining your health insurance premiums. Does your state or city have specific rules regarding health insurance? Is there fierce competition between health insurance providers in your state? All of these elements can affect your health insurance premiums.
Tobacco Use:In many states, your premiums could be up to 50% higher than those paid by a person who doesn't smoke, according to the Kaiser Family Foundation.
California, Massachusetts, Rhode Island and Vermont prohibit the addition of tobacco surcharges to health insurance policies purchased through state health insurance marketplaces.
Group Plans:Many employers offer group health insurance plans that have lower premiums than individual health insurance policies. If employer-sponsored coverage isn't an option, you may be eligible for a plan through Healthcare.gov.
Credit Score:Your credit score is important for more than just a car loan; it could also be a factor in applying for car insurance. Some companies offer incentives to develop healthy habits, such as having an annual health evaluation or trying to quit smoking. Having knowledge of the factors that affect the cost of car and health insurance can help you compare quotes and review policy renewals. It's worth having coverage, as otherwise you risk having to pay out of pocket to cover high medical expenses on your own.
Understanding these five factors can help you make an informed decision when it comes to choosing the right policy for you.