What are Factors that Can Affect the Cost of Car Insurance?

Purchasing a car insurance policy is a necessary part of being a driver — not only is it required by law, car insurance also provides a level of security in case of an accident. To receive compensation if you are ever involved in a collision, you must pay your insurance premiums every month. Insurance companies evaluate different aspects of policyholders’ lives to determine their likelihood of getting in a car accident, and determine their premium payment based on that likelihood. Those who present a greater chance of being in an accident pay more, and conversely, those with less of a chance pay less.

Factors Related to Your Car and Driving Behaviors

A history of accidents demonstrates to auto insurance providers that you are at risk for being involved in more collisions in the future. Therefore, it is more likely that they will need to pay a claim by insuring you.

In addition to your personal driving record, the car you drive could present a greater risk of accidents. If you drive an older, small car with a low safety rating, you’ll probably pay more for your car insurance.

Other Factors

There are some factors that affect your car insurance rates that are related to you, and are not as easily controllable as your driving habits. This can include your gender, age, residence, financial standing, and whether or not you are married. These elements can affect your car insurance rates because insurance providers evaluate statistics to determine the demographics of drivers who are most at risk for accidents.

Drivers who live in areas that are more densely populated, or with high rates of accidents, will pay some of the highest rates. Living in such an area, clearly, can contribute to a higher risk for being involved in a collision.

Regardless of how much you pay for car insurance, you continue to pay your premiums so you are covered if you are ever injured in a collision. Unfortunately, you may not see the results of your premium payments — your insurance provider could deny your claim.  

Contact Ortega, McGlashan, Hicks & Perez, PLLC after a car accident. We represent injury victims in the pursuit of just compensation.

To schedule a free consultation with our attorneys, use our contact form or call (915) 206-5154.