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How Are My Auto Insurance Rates Determined?

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If you’re like most people, you know that one factor that affects auto insurance rates is a person’s driving record. Things like speeding tickets, DUIs, and moving violations can all influence auto insurance rates for the worse, but that’s not all.

Before an insurance company sets its rate for a policyholder, it gathers information about the driver. The auto insurance carrier want to know things like the driver’s credit score, their age, where they live, the kind of car they drive, how many miles they drive each year, and so on.

Why do these things matter? Because each of these factors can have an influence on auto insurance rates. For example, if a driver lives in a high-crime neighborhood, his insurance can be much higher than someone else who lives in a rural area with little auto thefts. In contrast, someone may actually save money on their auto insurance if they park their car in a garage each night versus having to park it on the street.

Factors that Impact Insurance Rates

Insurance rates are affected by the following factors:

  • The age of the driver,
  • How long the driver has been licensed,
  • The driver’s gender (males have a higher rate of accidents so they cost more to insure),
  • The driver’s credit score,
  • The driver’s marital status (married people are usually a lower risk),
  • The person’s driving record,
  • The number of accidents the driver caused in the past three years,
  • How many miles the person drives each year; the more miles driven, the higher chances of an accident,
  • Where the driver lives,
  • If the car is parked in a garage,
  • Education – those with a college degree may pay less insurance, and
  • The type of car because, the more a car costs to repair or replace, the higher the insurance.

To learn more about what impact auto insurance rates, read this brochure from the South Carolina Department of Insurance. To file a car accident claim in Columbia, contact the Law Office of James R. Snell, Jr., LLC today.

Next: Lost Wages in a Car Accident Claim

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