Recently many auto carries have gotten their increase rate approved at a state average of 10%.  The justification for this change is directly correlated to increased claim occurrences resulting from distracted driving accidents, and even though you personally may turn off your phone while operating a vehicle. Though insurance premiums are determined by your driving record, an increase to the base rate effects every demographic a little differently. As you will see 2 of the 4 factors you can’t control.

These are 4 important factors that are taken into account; Zip Code, Age, Claims history, and vehicle model/year:

1. Zip Code - Where you live will determine much of the base rate applied to your account. How dense the population is or the population’s average age. Even the percentage of insured to not insured drivers in your area. Statistically drivers will be involved in more accidents in a big city than in a small town. Insurance companies are able to counter act that by adjust premium to cover losses within a community, so a customer in North Florida is not feeling the effects of 4 of July traffic jams on I-4.


2. Age - Each company has their own rating beliefs when it comes to age. Some companies believe that driving ability improves at a faster rate. So they are cheaper on younger drivers. While others will rate older drivers better believing driving ability decreases at a slower rate. The severity of accidents affect higher rates on drivers as well. Accidents with young drivers tend to happen on average, at higher speeds causing the damage done to be much higher. While older drivers have accidents at a slower speed, but the personal injury in those accidents are much greater because the body can’t handle the force nor does the body recover at the same rate.


3. Claims History - Most people understand if you’ve had claims and tickets your chance of having more claims is higher so your premium is adjusted to take that into account. 
   This is not levied against you forever though. Most events fall off the report after 3 years to 5 years.


4. Vehicle Model/Year - When you look at an Auto policy cost is broken into separate coverages; Liability (people suing you), Personal injury, and collision/comprehensive (repairing your vehicle). The larger the vehicle the more damage it does so Liability increases. The smaller vehicle the less it protects your body so personal injury increases. Thanks to new technology your family can be safer with all the automated sensors but you don't save money. The increase in repair cost drive the cost to a net equal, simple repair on a bumper that would normally cost $1200 dollars now cost $6000 to replace.