How Auto Insurance Rates Are Determined
Most people have no idea what their auto insurance rate is actually based off of. I believe loosely that it is some “pie-in-the-sky” number that came out of thin air. I assure you it is not in the more you understand your insurance rates the better position you will be to reduce them at some point in your life.
Let’s outline some factors that auto insurance companies is really important and ultimately affect the check you send them every month.
First, your car insurance rates will be higher when you were younger and lower when you are older. One of the great things about getting old is that your insurance premiums go down. When you are young you were viewed as part of the population that is very risky to ensure. Young people by nature act recklessly and take unnecessary risks that older people will not. It is for this reason that rates for a 16-year-old will be 3 to 4 times more than auto insurance rates for a 50-year-old.
Second, your physical location matters. You will pay a little bit more if it snows where you live. People who live in large cities pay more than people who live in small towns or the country. The crime rate of where you live is factored in as well because certain zip codes statistically have higher automobile theft rates than others.
Third, believe it or not your marital status can affect your car insurance rates. Statistically speaking married people are safer drivers than single people. There are a bunch of theories about why this is but it is generally accepted that married people take lesser risk in people who are not married. They have a home, kids, a wife (or husband), a timeshare, and several other liabilities that they are responsible for. A married person, generally speaking, will not be cavalier with his or her life on the road for cheap thrill. Single people, on the other hand, have less to lose and have a history of being more carefree and therefore pose a greater risk of getting into an accident.
Fourth, your driving history (record) is considered. You are considered by the automobile industry to be high risk if you constantly get speeding tickets, run a red light, do not stop at a stop sign, speed any school loan, driver recklessly, do not signal while on the road, or d
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rink and drive. Doing one or several of the items just mentioned will place you into a high-risk category and jack up your insurance rates. If you get too many of those violations in the specified period of time or receive a DUI you will need SR 22 insurance. This is special insurance for the riskiest drivers in the nation and it costs a lot of money. If you are fortunate you will be able to obtain an SR 22 insurance policy for $350 every month. Depending on what car you own you may not be that lucky.
Fifth, and finally, an insurance company takes into account what type of vehicle you are currently driving. Newer vehicles and sports vehicles will demand the highest insurance rates. There are some vehicles that are very safe but easy to be stolen. It will also cost more to insure. If I were you I would check to see which vehicles are relatively inexpensive to get insurance coverage on and which ones are the most expensive before I go car shopping. The amount is based off of statistical data and hard numbers I would not try to guess yourself.
These are the five main components in factoring insurance premiums. There are other smaller items but these are the top five in the ones you need to be aware of. Some of the things you can change some you cannot. But by knowing and understanding why you are paying the amount you’re paying every month you’ll be better prepared to get it reduced in the near future.
By: Advantage Pacific Insurance
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Officer docked $4,800 after DUI conviction – Yahoo! Canada News
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Mon Feb 1, 7:39 PM
EDMONTON (CBC) – A police service disciplinary hearing has ruled that a veteran Edmonton constable must forfeit the equivalent of $4,800 in pay after being convicted of drunk driving in 2008.
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Const. Brian Toner, 50, was convicted in May 2008 of having care and control of a vehicle while impaired. He was handed a conditional discharge and 18 months’ probation in provincial court last April.
In a decision released by a police disciplinary body Monday, Toner was suspended without pay for 80 hours and will immediately forfeit 40 hours of accumulated overtime as penalty for his behaviour and criminal conviction.
“The [Edmonton Police] Service has been very clear and consistent in its messaging about drunk driving and investigations of those (citizens and members of the Service) who disobey the criminal law and disciplinary regulations,” said police Supt Mark Logar, who presided over the disciplinary hearing. He said arguments on behalf of Toner by the police association and representatives of the police department “do not even begin to reflect the gravity of the Constables misconduct … provide an entirely insufficient denunciation, and furthermore serve as insufficient general and specific deterrence.”
In February 2006, Toner was found intoxicated and passed out in his parked and running car three blocks from the west division police station. He had been drinking after his shift with some colleagues in the station. He was found by a fellow officer, who brought him back to the station and charged him.
According to the conditions of his probation, Toner was to seek treatment for alcoholism. He was to abstain from alcohol and provide a breath sample whenever requested. He was to have performed 30 hours of community service and cannot be in bars when off-duty.
Toner also was banned from driving for one year. At his sentencing last year, Toner told the court he has struggled with binge drinking most of his adult life. The drinking got worse in 1990 after he shot a man who attacked him with a knife while he was responding to a call.
Toner attended a 56-day residential treatment program in B.C. after he was charged in 2006 and said he has been sober ever since.
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