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Factors That Affect Car Insurance Rate

Auto insurance expenditure rose by 5% in the US in 2018.  While it’s very easy to assume that only profit levels influenced this rise, it’s not true. Several factors influence your car insurance rate—from your driving record to how old you are. All companies don’t have the same formula to derive the insurance rates, but they all consider the same factors. These are:

Personal Factors

Did you know that gender influences car insurance rates? Women are less likely to pay a higher insurance premium as compared to men. That’s because they’re considered safer drivers and so less likely to get into an accident. Moreover, married individuals pay a lower insurance premium as compared to those who are single. Another important factor that affects a car’s insurance is age. If you’re 25 or under, you’ll pay a higher insurance premium because you’re considered to be young and inexperienced.


Car accident on the road

If you have a list of speeding tickets and have been in several car accidents, your insurance provider will raise your premium. That’s because insurance companies believe drivers who have been in accidents before are more likely to get into them again in the future. Although they might let minor accidents slide if you have a good driving history, being involved in major accidents or being ticketed repeatedly for reckless driving will lead to a higher premium. But here’s the good part: for every year you’re driving accident-free, the premium will decrease until the accident is deleted from your record. Moreover, DUIs are considered as severe violations and are also penalized with higher rates. Individuals with multiple DUI incidents might even be refused auto insurance coverage altogether.


Surprisingly, your location also affects your insurance rates. In some areas, there’s a higher rate of theft, vandalism and accidents. As a result, drivers have to pay higher insurance rates as compared to those living in rural areas or small towns. Moreover, if you’re living in a town that lesser traffic, you’re going to pay less premium. On the other hand, premiums are higher in big cities or metro because they have busier roads.

The Car You Have

The type of car you have will also influence your premium. If you have a vehicle that has security features like an anti-theft device or anti-lock, you can get discounts. Moreover, if you commute long distances or use your car a lot, it will increase the insurance rates because your car is more at risk of having an accident.

Last Thoughts

If you’ve been in an accident and need a car accident attorney to file an insurance claim on your behalf, you can connect with us. From managing social security issues to claiming disability benefits, we provide a range of services to the citizens of Little Rock. Need a lawyer? Make an appointment, and we’ll get back to you.

Disclaimer: Information in this blog has been provided for general information only. It may not reflect current laws in your region or state. It isn’t intended to substitute legal counsel.


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