GREENVILLE, South Carolina. When you sign up for your car insurance policy, how does your insurer currently calculate your rates? According to Forbes, many individuals may not be fully aware of the metrics insurance companies use in order to vet drivers and to determine their rates. For instance, studies have found that, on average, men pay higher auto insurance rates than women. Other factors can play a role in having lower auto insurance rates. For instance, a married woman who has a professional job and who owns her own home may receive lower rates than a woman who rents, who does not have a professional job, isn’t married, and doesn’t have a college degree. Age also plays a role in your insurance rates, with younger individuals typically paying more.
While there are many ways insurance companies set rates that are simply out of a consumer’s control, not getting speeding tickets, never drinking and driving, and maintaining a clean driving record can also lower your rates. However, as technology improves, drivers may find that they have more options available to lower their rates.
For instance, a new company has designed a policy specifically to cover Tesla owners. The more time the drivers spend in autonomous mode, the lower the driver’s insurance rates are. According to Forbes, the company bases its rates on statistics that show that autonomous vehicles are safer than regularly operated vehicles. In order to qualify for the insurance, drivers are required to activate an application that monitors their driving behavior. The app monitors cell phone use while driving, speeding, compliance with the law, and other possibly hazardous actions drivers take while behind the wheel. The most dangerous drivers are not offered insurance, while the drivers who are accepted receive rates that match their risk of getting into an accident.
Tesla itself stands behind the fact that its cars are safer than other vehicles. In Asia, for instance, the company pairs up with insurance companies to offer insurance to owners as part of the car purchasing package. Tesla itself may be considering offering its own insurance policy to owners.
While vetting drivers for their crash risk could lower rates, and possibly also encourage drivers to be safer, as it stands, most individuals’ policies use old actuarial formulas, essentially those that use age, gender, education, and driving record to determine the cost of a policy.
It is important to know your policy and how it works. Unfortunately, many drivers wait until they have been in an accident to try to understand their policies. Individuals who have been injured in a crash may face challenges speaking to adjusters and may not always understand what their rights are or what recovery they are entitled to receive. If you have been hurt in a crash, contact the attorneys at the Churdar Law Firm in Greenville, SC. We work closely with families and victims to help them receive the recovery they may deserve under the law. Adjusters may use formulas and other estimates to assess the value of your claims. We can assess your claim, help you understand the fair value of your recovery, and pursue your case either inside or outside of court. Visit us at www.churdarlaw.com to learn more.