Your Personal Statistics
The statistics of the insurance industry indicate that certain members of the driving public are more likely to be involved in accidents than others. Thus, the following are looked into as important factors in determining insurability as well as the price of the premium:
- Age. Younger drivers tend to be accident prone. For this reason, drivers under the age of 25 pay more in premiums than those aged 25 to 64. Similarly, drivers over the age of 65 tend to have more accidents than younger ones and thus may find their premiums going up.
- Gender. Statistics show that there is a gender difference in the rate of automobile accidents. For example, young unmarried men are statistically the worst drivers in the country. Thus, they will pay more in premiums than women of the same age, all other things being equal.
- Marital status. Married drivers are statistically less likely to have accidents than single drivers—proving, if nothing else, that two can live more cheaply than one, at least when it comes to auto insurance premiums.
What You Use the Car For
Another important factor in fixing rates is what you primarily use your car for. For example, if the car is mainly used for pleasure as opposed to business, you will probably have a lower premium. The mileage driven as part of that usage is also reviewed. Thus, if you use your car to drive to work each day, you will pay more if you drive 15 miles each way than if you drive less than 5 miles each way.
The Kind of Car You Drive
The kind of car you drive is also used to determine the premium. For example, the cost of repairing a Mercedes-Benz is likely to be much higher than that of a Ford sedan. Thus, the collision premium for a Mercedes will be higher than for a Ford. Likewise, some cars are safer to the driver and passenger than others. The safer the car, the more reasonable the premium should be. Other factors are also important, such as the car's age, original cost, and ease of repair.
Your Personal Driving Record
If you have a bad driving record, the statistical chances of your being in an accident are higher than if you have a good driving record. Thus, the good driver should pay less for insurance. But what distinguishes a good from a bad driver, especially if you have had no accidents in the last few years? The answer is convictions—convictions for moving violations, to be specific. Your driving record is reviewed continually to see whether you have been convicted of crimes such as drunk driving or of violations such as speeding or running a red light.
The Extent of Your Insurance
The extent of your coverage also plays a large part in determining the premium you will pay. If you have low deductibles you can expect to pay higher premiums than if you have high deductibles. Likewise, if you have high limits of liability, you will have to pay for the added protection. If you choose to select comprehensive coverage, you will pay for it in the total cost of your premium.
Knoxville car accident attorneys Car accident lawyers in Knoxville TN , Gilreath and Associates represents clients involved in auto accidents in Bristol TN and Knoxville Tennessee.