The Different Factors Which Influence the Average Car Insurance Premium in a Particular Town or City

Now, it’s worth pointing out that the average auto insurance premium in the country is around $1,500. Some states will have average premiums which exceed this value while others will have less than that. In large cities with high density populations and high traffic problems, the average premiums will naturally be a bit higher than the national average, whereas in small towns with low levels of traffic accidents, the average premiums will be significantly lower.
Now, as important as premiums may be, what’s more important is that you understand the factors which influence them. And there are quite a few of them.
Every state and city will have different traffic laws as well as traffic related problems. It is these factors which vehicle insurance providers take into account when computing the premiums of their clients.
And what are these factors? Well, here are among the most common of them all. And it should be kept in mind that their importance varies.
Speed Limit in Cities – The Speed Limit in a particular town or city can have a tremendous effect on traffic accidents. As such, they are considered as serious factors in the computation of car insurance premiums.
Speed Limit On Highways – Considering that a significant proportion of accidents happen on highways. It shouldn’t come as a surprise why many car insurance providers will take this particular issue into account.
Blood Alcohol Percentage Limit – As you might guess, the blood alcohol limit in a particular city influences incidents of DUI-related issues. And it is because of this that it is taken seriously by most car insurance companies.
Open Container Law – Like the Blood Alcohol Percentage Limit, this law is something which car insurance companies take into consideration very seriously because it influences cases of DUI.
Handheld Cell Phones – Laws with regards to the using of Handheld Cellphones is sometimes taken into account by auto insurance companies, especially those operating in cities where some incidents of traffic collision is related to cellphones.
License Suspension on DUI – License suspensions due to DUI – DWI can last for months. The severity of these kinds of laws can influence the car insurance market in more ways than one.
These are some of the state laws that you can expect to be a serious factor in the computation of your car insurance premiums. Some insurance companies will use them. Others will not. It’s all a matter of knowing.