How Insurance Companies Determine Your Premium

Many of you wonder how auto insurers come up with the price of their policies. Actuaries, risk managers, underwriters, and claims managers all contribute information in determining your rates. In this blog post, we will list some of the most important factors that are used to determine insurance premiums. 

Age: Your age plays a large part in determining your premium, especially if you are between the ages of 16 and 25. Companies believe that driving experience comes with age. The statistics show that young males have more accidents than any other group. If you are between 18 and 40 you should shop around for cheaper rates every 2-4 years. Companies lower your rates as you get older.

Amount of Coverage: The more coverage you have and the higher your limits will usually increase your premiums. Some companies will now give you discounts if you maintain more than the state minimum requirements. 

Credit: Credit scoring or insurance scoring is done by most auto insurers. They use this information to determine your likelihood of submitting claims. This of course has a bearing on your premiums. 

Car Type: The type of car you drive directly affects your premiums. If you are getting just liability, the type of car is less of a factor except for the discounts you get for air bags and seat belts. For those who need physical damage coverage, the car type is major. The value of the car and how much it cost to repair helps to determine your premiums. Insurance companies also know there are certain cars that are high in theft. Sports cars and coupes are still the leading types of cars that are high in premium. Domestic cars are usually less in premium than foreign cars. 

Driving Mileage: The number of miles you drive a year can increase your premium. The more miles you drive, the greater the possibility of an accident. 

Where You Drive: Some companies will surcharge you if you drive to work in the city or to another state, especially if the city has high accidents and theft occurrences. If a neighboring state has regulations that differ greatly, there are a few companies that might increase your rate. 

Speak with a Miami Car Accident Attorneys Today! 

If you have a home, business, or a high income, you should carry as much coverage as you can afford. At Suarez & Montero, our team of car accident attorneys in Miami will work with you every step of the way, offering the expert legal guidance you need to win your lawsuit. We will take care of all legal matters that relate to your claim and develop the best legal strategy for your individual case to ensure the successful recovery of your damages. This includes determining the economic and non-economic compensation you’re entitled to, identifying who should be held liable for your injuries and damages. We will not rest until we have developed and presented the most persuasive argument possible, and ensure you receive fair and just compensation for your damages. If you have been injured in a motor vehicle accident, you have the right to file a personal injury lawsuit against any responsible parties. Depending on the situation, the driver, owner, or manufacturer could be liable. Our legal team of Miami car accident lawyers have decades of experience handling car accident cases. With an extensive understanding of the laws involved, we can make sure you’re fully compensated for any medical bills, pain and suffering and other damages you may have experienced. Unlike other firms that handle cases in other areas of law in addition to their personal injury section, our firm is 100% dedicated to helping victims in personal injury cases and has been doing so for over 20 years. If you or someone you love has been involved in an accident, contact us today for a free 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. 

Jaime Suarez

An experienced legal personal injury defense professional in Miami, who is dedicated to helping accident victims with personal injury cases involving automobile accidents, brain and spinal cord injuries, slip and fall accidents, prescription errors, wrongful death, and accidents at work.