The Average Automobile Insurance Rates

Insurance is at its core, about spreading and mitigating risk for insurance carriers.  Statistics are commonly used by insurance providers in order to determine risk categories and thus insurance rates.  There are a number of factors that are considered when carriers determine their insurance rates.

• The driving record of the insured indicates the probability that the insurance company will have to pay out on a claim.  Insurance companies determine this probability by evaluating insurance points of the driver they will be insuring.  Insurance points are different from motor vehicle points.  Too many motor vehicle points could get your license revoked, while too many insurance points could prevent getting any insurance.


• Accidents are typically deemed to be at fault versus not at fault.  Merely the fact that the accident occurred is not enough to add insurance points to your record.  Insurance companies will typically only add points to incidents where you were the at fault driver.  Additionally, once fault is determined, the insurance company of the at fault party is typically responsible for financially covering any property or personal damage.  The amount of the payout on at fault accidents is a factor.


• Since speeding is considered risky behavior by insurance companies, and by law enforcement, instances of citations for speeding also add insurance points to a driver's record.  When charged with a speeding violation, speak with an attorney, they may be able to plead out the charge and get the violation reduced to a prayer for judgment.  A PFJ will not impact insurance premiums unless you are charged with another offense within two years.  If a prayer for judgment is not obtained, ask your attorney to try and get the amount charged over the legal limit reduced.  This can reduce the number of insurance points charged.


• Consider previous incidents when getting behind the wheel of your automobile.  Insurance points can affect your premiums for a minimum of three years, sometimes as many as five.  If the number of insurance points on your record is keeping your insurance rate high, talk with your insurance agent about safe driving classes, or adjusting your coverage amounts to keep your premium low.