5 Reasons Your Auto Insurance Rates May Rise
Insurance companies use a variety of factors to determine how much you will pay for your car insurance based on the level of risk to the company. The riskier you appear, the more you will pay for car insurance. The safer you seem, the less you’ll pay. Not all companies consider the same factors with equal weight, which is why it is important to compare rates and services of different insurance companies. Here are some of the main factors that affect your premiums.
Driving Record: If you have an awful driving record filled with parking tickets, moving violations, or if you find yourself constantly getting into minor accidents or worse, it is likely that your premium will increase over time. Most auto insurance providers will routinely increase premium rates for drivers who are often cited for parking or moving violations, get into accidents all the time, or often make insurance claims for damage to their vehicle. Another area of concern for drivers is whether they have been arrested for driving under the influence in the past or if they were involved in an accident where the driver was charged with driving under the influence of drugs or alcohol. Overall, drivers with these issues in Florida will be seen as high-risk drivers by most if not all auto insurance providers.
Place of Residence: Where you live matters and can definitely affect the rate of your car insurance premiums. The main distinction will be between people that live in a remote or rural location and those that live in urban areas or cities. Why? Because there are more people and as a result more drivers in a big city. As it pertains to Florida, there is really no way to get around the city if you don’t have a vehicle. This is in sharp contrast to big cities like New York where many residents get around on the subway. Even so, people who live in big cities or in highly populated areas will often times have to pay higher car insurance premiums than those who live in remote areas with a lower a population of residents. Additionally, if your place of residence has unpredictable weather or harsh weather, you may also see your insurance premium rates go up over time. It is important to consider these things when moving to a new state or area within your state.
Age: It can be very expensive to insure teen drivers or drivers in their early 20’s. Most auto insurance companies believe that the age of a driver can predict the likelihood that the driver is involved in an accident. The CDC has stated that young drivers are responsible for 11% of the total costs of vehicle injuries. Due to these statistics, many insurance companies increase their insurance rates for young drivers. This tends to remain unchanged for young drivers until they turn 25.
Vehicle Type: There are several important details about your vehicle type that can affect your auto insurance costs. In most instances, the more expensive the car, the higher the insurance costs will be. This is because it increases the odds of the car being stolen. Additionally, the amount of time you spend behind the wheel also affects your premium costs. This is because auto insurance companies believe a driver is at a higher risk of being involved in an accident if they drive every day versus those who only drive on the weekends.
Past insurance claims: In most instances, if an auto insurer is aware of past claims with large payouts, they will eventually raise your insurance premiums. It doesn’t matter whether you were at fault or not in the past. However, if you continue to maintain a good driving record, you should see your premium costs go down after some time.
Contact a Car Accident Attorney in Miami Today!
The law protects injured victims by permitting them to obtain compensation from the at-fault party who caused their injury. Auto insurers are hoping that you won’t take the time to hire a lawyer or get informed about the legal ramifications of your injury and claim. Don’t let yourself get taken advantage of. Suarez & Montero has been assisting injured clients in South Florida for over 19 years against insurance companies. We appreciate the extensive impact an injury can have on one’s life or on their family and overall health. That is why we our firm focuses on protecting the rights of injured victims. If you or someone you love has been involved in an accident, contact us today for a free consultation. We are available 24/7 to give you a free, no risk case consultation.
We serve clients throughout Florida including those in the following areas:
Miami-Dade: Aventura, Coral Gables, Doral, Fontainebleau, Hialeah, Homestead, Kendall, Miami, Miami Beach, Miami Lakes, North Miami, Tamiami, and Westchester.
Broward: Fort Lauderdale, Hallandale Beach, Hollywood, Pembroke Pines, and Weston; and Palm Beach County including Boca Raton, Lake Worth, and West Palm Beach.
