A good driving record is an important factor in determining your automobile insurance premiums, but it is not the only factor!
Recognized by Best Lawyers® for Plaintiffs Personal Injury Litigation in Indianapolis, IN, attorney Charlie Ward shares a short list of elements that figure into the auto insurance premium equation.
In all but three states (California, Hawaii and Massachusetts) personal credit scores influence the automobile rate equation. For example, if your credit score drops from excellent to fair, you may expect a 27% rise in yearly premiums. A decrease from excellent to poor may double your rates. According to Consumer Reports, a poor credit score may add as much as $1,300 to your annual insurance rate.
Medical cost projections also impact rates. While 2020 has been fiscally unpredictable, medical, drug and mental health providers, are optimistic that telehealth, delayed treatments, increased vaccinations, and a pipeline of specialty drugs are indicative of increased costs in 2021.
New Zip Code
One way that automobile insurance companies assign risk is by zip codes. If you move to a densely populated area, it is likely that your car insurance will increase. Likewise, moving into a rural zip code may lower your rates.
Adding miles to your odometer also increases the risk of insurance companies. If you want to lower your rates, reduce discretionary driving.
More Uninsured Motorists Mean Higher Rates
Why? If you are injured by a negligent uninsured driver, compensation for injuries and other damages will likely fall upon your own automobile insurance policy.
The National Safety Council reports that one out of every four accidents is caused by drivers who text while driving. States with hand-held device laws have been heavily influenced by cell-service providers, automobile manufacturers, and insurance industry lobbyists, working in tandem to reduce injuries and deaths related to distracted driving.
Insurance companies rely heavily upon statistics when price-setting products. Early numbers from states such as Colorado show a direct correlation may exist between marijuana use and negligent driving. In states where the use of marijuana is legal, legislators have tried to incorporate a “legal limit” into their laws but there are inherent problems in testing and result accuracy. More data and reliable testing is needed, but at this point how insurance companies interpret and treat influence of marijuana risk remains to be seen.
Faster Speed Limits
A bump-up in your area’s legal speed limits may increase your insurance premiums.
Approximately 22% of highway accidents are weather-related according to the Federal Highway Administration, therefore incidents of severe weather may bolster your auto insurance premiums.
Experienced Accident Attorneys in Indianapolis
The personal injury attorneys of Ward & Ward Law Firm, Don and Charlie Ward, have been recognized by Best Lawyers® for their experience in Plaintiffs Personal Injury Litigation in Indianapolis, IN. If you have been injured in a car accident through no fault of your own, call Charlie Ward today at (317) 639-9501 for a cost-free analysis of your claim.