While most of us have a good idea about the basics of car insurance, such as shopping around for a suitable insurance plan, selecting the needed coverages, making premium payments and adjusting the plan according to any changes in our situation. But there are several factors that many people are unaware of that can cause insurance premiums to spike. Chicago car wreck lawyer explains these 5 factors in detail.
- Adding a teenage driver to the insurance plan – It’s a well-known fact that teen drivers are more prone to accidents, and insurance companies are well aware of this. Their inexperience combined with poor judgment become a perfect recipe for a car accident. Every time a teen driver ventures out on the road, they are prone to making mistakes and can cause accidents that involve other drivers. Due to this, once you add a teen driver to your insurance plan, your premium will most likely increase. Insurance companies perceive teen drivers as high-risk.
- Driving record and traffic accidents or violations – If you have been involved in any automobile accident or have any traffic tickets, your insurance rates may increase. Most insurance companies perform a background check on the driver, and during this process, they check for any traffic violations and accidents that he/she was involved in. If they find that you have received tickets or have been involved in any accident, your insurance premiums may spike.
- Purchasing a new car – It often costs much more to replace newer vehicles compared to older models. Also, newer models have a higher market value than older vehicles and insurance companies are aware of that. If you get into an accident with your new vehicle, it may be more expensive to replace parts and make the repairs.
- Type of vehicle – Your insurance rates can decrease or increase based on the type of vehicle you drive. If you drive a swanky sports car, the premium rates you have to pay may increase for several reasons. These types of vehicles are stolen more often and attract more attention from law enforcement officials. This can make you more susceptible to traffic tickets. Family cars, in general, have lower premium rates.
- Marital Status – Married drivers with children are considered safe drivers because they are less likely to drive recklessly. Insurance companies believe that when a driver has children strapped into their vehicle, they will be more cautious while driving. Married drivers with children are also more likely to follow traffic rules and avoid accidents. On the other hand, unmarried drivers without children are considered high-risk drivers and have to pay higher premiums. If you are a man under the age of 25, be ready to pay more.
If you have you been involved in a car accident and noticed an insurance premium increase although the accident was not your fault, contact a Chicago car accident lawyer to know your rights.