What Factors Affect Auto Insurance Premiums? – Metairie, LA

Auto Insurance Risk Factors

What Factors Affect Auto Insurance Premiums? – Metairie, LA

When purchasing car insurance, your auto insurance premiums are determined by a number of factors that act for or against you. These factors let the insurer know you meet certain criteria and help calculate your risk factor. The most common are your driving record, credit score, age, marital status, gender, occupation, past auto claims and the car you drive. Below we will expand on how and why each one of these factors affects your auto insurance premiums in the way they do.

car insurance risk factors

Driving Record
This one is pretty straightforward. Insurers want to know the way you drive so they can determine how big of a liability you will be. If you’ve never gotten in a car accident, chances are you won’t get in one anytime soon. It goes the same for speeding tickets and other traffic violations. Insurers look at your past record as it serves as a way of predicting future behaviors. Remember that insurance is a numbers game, so don’t become an additional expense to your insurance company.

Credit Score
The University of Texas and The Federal Trade Commission conducted independent studies that found people with low credit scores are more likely to drop insurance and have higher claim payouts. This proves a problem for car insurers since insurance is only cost-effective when a big pool of premiums is collected. However, not all insurers take this factor into account.

Age
Insurance companies breakage into categories to determine your risk factor. If you’re in the 16 to 18 age range, you’ll be paying twice as much as the average rate. That’s because inexperienced drivers are more likely to get into accidents, thus costing the insurer more money. Conversely, when you turn 40 you should see a dramatic drop in your rate.

Marital Status
Statistically, married people drive safer than single individuals, and that alone can bring your insurance premium down. They also tend to be more responsible and many of them have children, which adds on to the safe driving argument.

Gender
Again, statistics show that men incur more riskier behavior than women while driving, and account for more DUIs and speeding violations. Men also tend to drive more than women, putting them at a higher risk overall.

Occupation
Some insurance companies consider occupations like artists, actors, pilots, and scientists to require a certain level of attention and concentration, which means they tend to drive this way too. At the same time, if you work as a lawyer, doctor or judge, your insurance will go up as these jobs are associated with high stress and multiple meeting trips.

Your Car
Insurance companies also look at the year, make and model of the car you’re trying to cover. Exotic, luxury and sports cars carry higher premiums since their parts are more expensive to replace. Also, cars with better safety devices will give you a better rate. Currently, crossover SUVs are in the top of the list of cheaper vehicles to insure.

All in all these factors have a dramatic effect on your auto insurance premiums. Don’t forget to get in touch with your professional insurance expert to find out other ways to save you money.

AWS Insurance serves New Orleans, Metairie, Kenner, and Southern Louisiana by providing protection for your home, business, or family with affordable plans in property insurance, liability insurance, life insurance, car insurance, and flood insurance from our Metairie, LA office. Our corporate clients can rest assured that our dedicated advisers at AWS Risk Management, LLC will help you implement workable solutions that achieve maximum asset protection with minimal cost of risk to your company.

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.