Causes Of Higher Auto Insurance Rates

Some states just seem to have higher auto insurance rates than others. Although some reasons seem to be logical, others seem to defy reason. Automobile insurance rates tend to follow some very simple trends when risk is taken into account. The insurance industry knows through experience that specific factors such as poor road conditions will tend to cause more auto accidents, and hazardous weather conditions are equally culpable.

Sociological Factors

Human behavior being a factor in the risk of auto accidents is a no-brainer. Speaking of that, insurers tend to charge the less educated of us more for car insurance. If you have the wrong type of job, expect to pay more for insurance. Only 10 states prohibit insurance companies from rating drivers based on their jobs, but those who do, charge up to $1000 difference between lawyer and janitor paying for the same coverage. To repeat that: janitors pay $1000 more for the same coverage from the top insurers in the country. Here's the rub. Studies of DMV records, comparing accident rates and professions show that medical doctors, attorneys, and architects are among the worst drivers, having twice the accident rates as many blue-collar professions who pay much more for insurance. Independent experts hypothesize that insurance companies are not so much concerned about your having an automobile accident as they are about your desire to be reimbursed and initiating a claim.

Steering Clear Of High Auto Insurance Costs

Other than going back to school and getting your medical degree and living anywhere but Louisiana, Michigan, or New Jersey, there are a few more realistic things you can do to lower your auto insurance costs. Take public transit to keep your mileage down, since the more miles you drive, the more likely you will have an accident. When it is time to trade in your old vehicle, choose one with top rated crash tests and ample safety equipment. Take driver refresher courses to hone your skills. The fact is that 10% of drivers could not pass the DMV licensing test if they had to take it today. How does this help lower your insurance rates? Improving your skills and the safety of your vehicle gives you an edge that may allow you to lower your deductible, consequently lowering your rates. One more thing that can help you keep your auto insurance rates affordable is shopping for the best insurance company and comparing rates.