In Georgia and across the nation, citizens are required by law to insure the vehicles that they drive. Sometimes, this insurance can be reasonable and other times it’s quite expensive, but do people know why rates vary so much?
As a licensed driver, you’re probably aware that speeding tickets and drunk driving convictions will cause your insurance premiums to rise, but are you aware of the other factors that determine your auto insurance rates?
If you’re like a lot of drivers, you don’t have a full knowledge of what factors affect your auto insurance premiums – and there are numerous factors. Here is a list of what factors determine your auto insurance premiums:
- Your age. Young drivers are inexperienced and therefore get into more car accidents than experienced drivers. Because of this, teenagers and people in their early twenties cost more to insure than older drivers.
- Your gender. Statistically, males commit more moving violations and cause more crashes than females, especially young males. So, teenage males pay more for insurance than teenage females. Same goes for males in their twenties – they cost more to insure than young females in the same age group.
- Your experience. Inexperienced drivers cause more car accidents than experienced drivers, even if they got licensed at an older age. If you’re a newly licensed driver, your insurance will cost more than if you had been driving for 10 or 20 years.
- Your driving record. This one is a given. If you have moving violations, which translate into points on your driving record, you will pay more for insurance because you’re considered a “high risk” driver.
- How much you drive. If you put a lot of miles on your car because you have a long commute to work, you have a higher chance of being in a wreck. The higher annual mileage will reflect in your auto insurance premiums – you’ll have to pay more than if you worked a couple miles from your home and barely drove.
- Where you live. If you live in a big city or a highly-populated suburb, you’ll pay more for auto insurance. Why? Because, there are more vandalisms and auto thefts in urban areas compared to rural ones.
- The car you drive. Some cars cost more to insure because they are expensive to repair or replace. On the flipside, if you have anti-theft devices installed or park your car in a garage, you could possibly save money on insurance.
- Your credit score. Over 90 percent of insurance companies in the U.S. use credit scores to predict the chances of a driver filing a claim. If you have poor or okay credit, you’ll pay more for insurance even if you have a clean driving record.
To learn more about insurance in Georgia, check out this brochure brought to you by Ralph T. Hudgens, the Insurance & Safety Commissioner. To file a car accident claim in Smyrna or the surrounding areas, contact Jones & Swanson today!