Quitting Smoking Can Lower Your Rates
With rising prices and rising tobacco taxes, smoking is getting harder and harder to afford, but did you realize that smoking may be raising your insurance rates?
Anyone who has shopped for life insurance knows that smoking raises your rates. But what about auto insurance? Did you know that many insurers provide discounts for non-smokers? Smoking while driving is a distraction that can cause an accident. And a dropped cigarette can lead to a car fire.
If you’re on your employer’s health plan, you’ve probably got a group rate that isn’t affected by your pre-existing conditions or lifestyle choices. But if you’re a small business owner or you go to work for a small company, you could find that your tobacco habit is going to raise your rates.
You may also find that your insurer offers a non-smoker discount on your renter’s or homeowner’s policy. Smoking is the cause of thousands of home and apartment fires every year. If you’re a non-smoker, you have a lower risk of causing a fire.
Remember that insurance is a bet. If the insurance company thinks the odds of something happening are 100 to 1, they’ll charge you somewhere around $1.20 for a $100 payout if it happens. If they think the chance is 1 in 10, then you’ll be paying $12 for a possible $100 payout.
Whether it’s health problems, car accidents, or house fires, being a smoker makes them more likely to happen, thus many insurance companies will charge you higher rates. Talk to your insurer or your agent and see if there are non-smoker discounts available to you.