What Factors Affect Your Insurance Rates?
If you’re feeling sensitive to price increases, including auto insurance premiums, you are not alone. In California, to legally drive, all motorists are required to carry some form of auto insurance. California has minimum $15,000 liability coverage for one person, with $30,000 for total exposure from an accident. We have provided specific information regarding what criteria affects your auto insurance rates.
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Why Is My Insurance Premium So High?
What gauges your insurance cost is pretty straightforward and it includes everything from your marital status to where you live, your age, how often you drive and more. Your driving record is also considered. Accidents and DUIs mean that you will pay much more for auto insurance. Age is also important, as young drivers are more likely to be involved in an accident, and therefore drivers under 25 pay much higher rates.
The number of miles you drive also affects your premium. The more you drive per year, the greater the chance that you will be in an auto accident. Insurance companies even look at your credit rating to calculate whether or not they believe you will file a claim, based on your past history of bankruptcies, payment history, length of credit histories and more.
Are You A High-Risk Driver?
If you have accident claims, speeding or other driving violation tickets, the insurance company may decide that you are a high-risk driver. If you are classified as a high-risk driver, your insurance company may decline to renew your coverage. Worse still, you will have to pay a significantly higher premium for coverage.
We hope that you found this information useful. Questions about insurance rates are some of the most frequently asked questions that clients ask the Auto Accident Attorneys at Nadrich & Cohen Accident Injury Lawyers.