Most drivers know that they are required by law to purchase auto insurance. They also know that being a careful driver lowers your insurance rate and being a new driver raises it. There are also plenty of myths surrounding car insurance, such as the idea that car color affects insurance premiums.. To supplement your knowledge, read on to learn five surprising facts that you may not know about auto insurance.

1. Your credit score can raise – or lower – your auto insurance premium.

Among many factors, car insurance companies look at your credit score when calculating your insurance premium, for several reasons. Low credit scores usually result from missing credit card payments, which indicates that the driver may not pay his or her auto insurer on time either. Furthermore, research shows that people with lower credit scores are more likely to file a claim, so insurers charge more up front.

2. Your job can affect your car insurance rate.

Auto insurance companies charge more for people whose jobs are deemed “high-risk.” Such jobs include doctors, lawyers, real estate brokers, business executives, architects, and salespeople. On the other hand, “lower-risk” workers such as scientists, nurses, pilots, accountants, teachers, and artists tend to be charged lower rates, because their jobs are associated with stability and a detail-oriented personality that is less likely to get them into a crash.

3. In New Jersey, insurers have to pay the sales tax on a replacement car.

If your car is totaled in an accident in New Jersey or 33 other states, the auto insurance company is required to pay not only for the market value of a replacement vehicle, but also for the sales tax on that vehicle.

4. You can get a car insurance tax deduction if you use your vehicle for business.

Whether you are an employee or are self-employed, you can receive a tax deduction if your vehicle is used for business at least part of the time. You can either calculate the percentage of time you use your car for business and apply that deduction to your insurance tax or you can use the standard deduction that the IRS offers.

5. The type of vehicle you have can affect your insurance rate.

Insurers raise premiums for vehicles that they deem “high-risk.” These are typically vehicles which are more likely to get stolen or vandalized. Therefore, newer makes and models pay higher insurance rates, as do more expensive or well-known vehicles.

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