Car Insurance Matters

Some of the factors that affect the rates that you will pay for auto insurance are based on the individual driver, while some are based solely on where you live. As with every other kind of insurance, risk is the determining factor is car insurance rates.

What causes your car insurance rates to be more expensive?

Age

Young drivers are less experienced than older drivers, but are overconfident in their ability, and are not familiar with the irrational and unpredictable behavior of some other drivers.Young people are also more impulsive and tend to engage in more risky behavior such as speeding.

According to the IIHS ( Insurance Institute for Highway Safety), teenagers in particular have the highest rate of car accidents per miles traveled. This has led many states to offer provisional licenses to younger drivers, which may pose restrictions such as limiting night driving and transporting of passengers.

Zip code

The location of your home can cause your car insurance rates to be much higher than those in surrounding areas. Auto insurance rates in cities tend to be higher than suburban areas, with rural areas the least expensive. Population density resulting in higher numbers of claims are the main cause of higher rates in urban areas.

Even within a city, your zip code may determine your auto insurance rate. At risk neighborhoods have higher incidence of vandalism and auto theft, which pushes rates higher in those areas to compensate for insurance company losses.

Driving record

This is a major cause of higher auto insurance rates for drivers of any age. If you have had multiple insurance claims, you will be considered a high risk driver and pay higher rates.However, this is not the only determining factor. When you are charged with moving violations such as speeding, reckless driving, or running stop signs or red lights, you are assessed points which can accrue to the level where your driving license may be suspended. These points will also be used to determine your insurance rate. 

Insurance history

Many standard insurance companies won't offer insurance to drivers who were not insured for the previous three months. Many individuals who have a car that they are not driving for a temporary period of time will keep their car insured to avoid this situation. Drivers who have been insured will often need to obtain high risk insurance for one year before they can return to coverage under standard insurance companies.

To learn more, contact a company like Olympic Northwest Insurance with any questions or concerns you have.