Everyone knows about the potential health hazards of smoking. It’s not likely that anyone cracking open an $8 pack of cigarettes is surprised—or even put off—by the Surgeon General warnings that adorn their packages. But did you know that being a smoker could also have a significant impact on your home and auto insurance premiums?
Homeowners insurance policy makers rationale is simple and straightforward: a home occupied by a smoker stands an inherently greater chance of burning to the ground than a home occupied by a non-smoker. It’s a fairly accurate assumption to make, given the laws of probability, which is one of the reasons non-smoking customers pay, on average, 10 percent less on premium rates than those who light up.
As for auto insurance, the typical smoker pays an average of 5 percent more than a non-smoker. Less than the increase in homeowners insurance costs but still significant—especially when you consider that full time smokers already spend an average $150-$200 a month on their vice of choice. The reason smokers are seen as higher risks behind the wheel are two-fold.
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Homeowner Basics: Exploring your Home Insurance Options
01/01/2013
As a homeowner, you have a lot of decisions to make. One of the most important is choosing the right insurance to protect you and your finances in case the unexpected occurs. While understanding in...
Read More →