Driving History and More: What Affects My Car Insurance Rates?

Driving History and More: What Affects My Car Insurance Rates?

The purpose of car insurance is to provide benefits in the event of an accident. Because of this, people who are seen as at risk for collisions often pay higher rates. When insurance providers expect that they will eventually need to pay a claim for a certain driver, they set their premiums accordingly.

So how do insurance companies determine their customers’ likelihood of being injured in a collision and filing a claim? Car insurance rates are decided based on an analysis of each driver’s own probability of accidents, as well as different statistical considerations.

Your History of Accidents and Traffic Violations

Possibly the most significant factor that affects car insurance premiums is a policy holder’s driving history, including their past accidents and tickets. Insurance companies primarily determine their costs according to the likelihood they will have to pay a customer’s claim in the future, and driving history is one of the best indicators of that likelihood.

The Kind of Car You Drive

The make and model of your vehicle can have an impact on your car insurance rates too — insurance providers analyze statistics that show the number of accidents involving drivers who own certain types of cars, and adjust their rates based on that information. For example, a person who drives a sports car may pay more than a person who drives a minivan with the latest safety features, because the sports car is seen as more dangerous.


Similar to how car types are evaluated for their accident likelihood, certain demographics are analyzed too. People of different ages, genders, and even credit scores may have higher insurance rates because a higher percentage of collisions exist in their demographic. Generally, young people pay more for car insurance than older people because inexperienced drivers are statistically involved in more accidents.

Your Place of Residence

Where you live is another statistical factor that impacts car insurance rates. Some places just have more car accidents than others, so the residents of those places pay accordingly.

Your Level of Coverage

When you decide on your insurance plan, the level of coverage you select will affect the price. It’s simple — you will pay more for added coverage. The plan you choose should be based on your expectation of what you will need assistance with if you are involved in a car accident.

If you are injured in a car accident, contact Goeing Goeing & McQuinn PLLC. We offer free consultations to discuss how we can help you recover compensation following a collision.

To schedule a no-cost case evaluation with our attorneys, send us a message or call (859) 253-0088.

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