Factors Influencing High Risk Auto Insurance Rates

When it comes to auto insurance, not all drivers are considered equal in the eyes of insurance companies. Your agent can help you understand the various factors that may contribute to a high risk car insurance classification.

Driving Record

One of the primary factors influencing high risk auto insurance rates is a driver’s history of accidents and traffic violations. Insurance companies use this information to assess risk; drivers with a history of accidents or numerous traffic tickets are statistically more likely to be involved in future incidents. As a result, insurers may charge higher premiums to offset this perceived risk.

DUI Conviction 

A DUI conviction is a serious offense that typically leads to being classified as a high risk driver. DUIs indicate a significant risk of impaired driving, which can lead to accidents and legal liabilities. In addition to potential fines and license suspension, individuals with a DUI conviction often face higher insurance premiums due to the increased likelihood of future claims.

Age and Experience

Younger and inexperienced drivers are also considered high risk by insurance companies. Statistics show that younger drivers, especially those under 25, are more prone to accidents compared to older, more experienced drivers. As a result, insurance premiums for young drivers are typically higher until they gain more driving experience and establish a safe driving record.

Vehicle Type

The type of vehicle a driver owns can also influence insurance rates. High-performance cars or vehicles with a higher likelihood of theft or expensive repairs generally cost more to insure.

Geographic Location

Where a driver lives can impact insurance rates as well. Urban areas with higher traffic density and crime rates tend to have higher insurance premiums compared to rural areas. Additionally, state-specific insurance regulations and requirements can also affect rates, making it essential for drivers to understand local laws and insurance practices.

Credit History

Georgia insurers can consider credit history when determining insurance premiums. Insurers may use credit-based insurance scores to assess risk, as studies have shown a correlation between credit history and the likelihood of filing insurance claims. Drivers with lower credit scores may face higher premiums as a result.

Contact Us

Contact King Insurance in Jonesboro, Georgia, to learn more about how insurers determine car insurance premiums and get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.