When you apply for car insurance, your provider will determine the monthly premiums you will have to pay. However, these amounts are not random. The higher your chance of getting into an accident is, the higher your car insurance rates will be. These calculations, based on a number of factors gained from crash data, tested algorithms, and statistics, all contribute to the company’s determination of your risk of getting into an accident.
#1: Your Geographical Location
Before the insurance company will look at any other factor, they will likely begin looking at your geographical location. Where you live will have a very large impact on your overall insurance rate. When companies look at your geographical location, they are considering what occurs in your local area. Specifically, they look at the traffic accident rate, the number of claims the area sees per year, the car theft rate, and the vandalism rate. The company may also look at the number of natural disasters that occur in your area and the chance of inclement, dangerous weather.
The higher your accident risk is based on these factors, the higher your rate will be. For example, if you live in a busy, dense area with a high amount of car collisions and thefts, you may have to pay a higher rate. If you live in a quiet, suburban area with a low crime rate, you will probably have a lower rate. The company will also consider the number of uninsured drivers in your state. Unfortunately, Florida is home to many uninsured drivers, which will increase your rates no matter where you live.
#2: Your Driving Record and Experience
Your driving record also has a massive impact on your insurance rates. How safely you drive is very important to insurance companies, because it is a clear indication of how you behave on the road and how safely you drive. If you have a clean record with no accidents, you will have lower rates. The more violations you have on your record, even minor violations, the higher your rates will be.
Insurance companies also examine the length of time you have been driving. The less experienced a driver is, the more likely he or she is to get into an accident versus a seasoned driver. As a result, insurance companies will likely give higher rates to drivers with a shorter history.
#3: Your Age
Companies also consider how old you are when they determine your insurance rates. Younger drivers typically have less experience and therefore are at a higher risk of getting into an accident. Statistically, younger drivers also get into more accidents than older drivers. In addition, very old drivers over the age of 70 may see higher rates due to a loss of fine motor skills with age. Aging often leads to higher rates of accidents.
#4: Your Gender
Although some states prohibit insurance companies from using this factor, many companies can use gender to determine their insurance rates. Many statistics show that men are more likely to get into an accident than women, especially young men. Florida is a state where gender can be a factor in determining insurance rates. As a result, young men and men over the age of 60 often have to pay higher rates than women around the same age.
#5: Your Marital Status
Another surprising factor that can raise your insurance rate is your marital status. Statistically, couples who are married are less likely to get into an accident than single individuals, especially if they have children. Divorced and widowed people also are less likely to get into an accident. As a result, single people often have higher insurance rates than married or formerly married people.
Many more factors can contribute to your monthly premiums. If you have questions regarding your insurance rates and policy, contact a Miami car accident attorney.