Where You Live Can Influence Insurance Rates
When it comes to car insurance premiums, many factors influence how much you pay. When you are aware of all the various elements that insurers consider when calculating premiums, it can help you understand when and why rates go up, including increases following a collision. If you need support as you navigate the financial aftermath of a Louisiana car accident, connect with a New Orleans personal injury lawyer.
A Range of Considerations Influence Insurance Premiums
To manage your household budget effectively, you need to know how much your bills are and when you could be facing an increase in expenses. Part of this is being aware of your auto insurance premiums, one or more of the following could affect those rates.
- Where you live plays a major role in determining your insurance rates. Urban areas like New Orleans tend to have higher premiums due to increased traffic density, higher crime rates, and a greater likelihood of accidents and claims.
- Driving habits. How much you drive also impacts the size of an insurance bill. People who drive long distances regularly are at a higher risk of being involved in an accident, which leads insurers to charge higher premiums.
- Personal driving history. If you have a record of accidents or traffic violations, insurers view you as a higher risk and will charge a higher amount. Conversely, a clean driving record can help you secure lower rates.
- Type of vehicle. The make and model of your vehicle also influences your insurance costs. High-performance cars and luxury vehicles often have high theft rates and can cost more to fix.
There are decisions you can make to keep your premiums lower, such as prioritizing maintaining a clean driving record and choosing to drive a car that doesn’t carry high repair or replacement costs.
Impact of Accidents on Insurance Rates
Of course, avoiding accidents is another way to protect yourself from increased insurance fees. The reality is that getting into an accident can significantly impact your insurance premiums. In New Orleans, the increase can be substantial, depending on the severity of the accident and your driving history.
After an accident, especially one where you are at fault, premiums can go up by 20-40%. In some cases, they’ll even double. The rate increase usually lasts for three to five years, depending on the insurer’s policies and regulations. The more severe accidents that result in significant claims will cause a higher rate increase compared to minor fender-benders.
Dealing with the aftermath of an accident can be overwhelming, but a New Orleans personal injury lawyer can help you understand your policy and ensure that you file your claim correctly. Additionally, they can advise you on how to control insurance expenses moving forward.
Have you been worrying about an insurance premium increase following a car wreck? If you’ve been in a New Orleans, Metairie, or Gretna accident, don’t face the aftermath alone, consult with the legal team at Palazzo Law Firm to protect your financial future. Call 504-433-1442 to schedule a consultation.
