Disclaimer - By publishing this information on this Web site, the Boston, Massachusetts law firm of Altman & Altman LLP is not claiming to represent any clients or cases mentioned here. The content provided is designed to inform readers and is not intended as legal advice.

How Are Motor Vehicle Insurance Rates Determined?

In MA, as in every state in the nation, drivers are required by law to insure their vehicles. Much of your insurance rate is determined by the coverage options you choose, but there are several other factors that go into calculating annual premium.

Rate Factors

Most people know that black marks on your driving record, such as OUI convictions and speeding tickets, can increase your insurance premiums, but what else factors into your rate?

  • Age: Due to a simple lack of experience, young people—from teens to early twenties—pay the highest rates for insurance. These rates can be decreased in a variety of ways, from driver’s education courses to completing a year of incident-free driving.
  • Gender: Because males have more moving violations than females—from a statistical standpoint—teen males pay more in insurance premiums than their female counterparts.
  • Overall experience: If you are older when you first get your license, you will pay higher rates than if you’d been driving for 10 years or more. Statistically speaking, inexperience leads to more accidents.
  • Driving record: Whenever you get a moving violation—whether for speeding, running a red light, or operating under the influence—points will be added to your driving record. Points are bad. They translate to higher insurance premiums and, if you get too many of them, you may lose your license.
  • Mileage: If you work close to home and don’t put many miles on your vehicle, you will likely pay less than if you have a long commute.
  • Location: Where you live factors heavily into your auto insurance rates. If you live in a highly-populated area, such as a city, your premiums will be higher because of the risk of vandalism and theft.
  • The vehicle: Cars that are more expensive to fix or replace will cost more, but helpful features—such as anti-theft devices—may reduce the rate. A Boston auto accident lawyer can help you determine how to proceed if you’ve been injured due to another driver’s negligence.
  • Where you park: If you park in a locked garage, your rates will be lower than if you park on a city street, for example.
  • Credit score: Most insurance companies use credit scores as an indicator of the likelihood that drivers will file claims. Even if your driving record is perfect, you will probably pay more for insurance if your credit score is poor.

In addition to the factors above, the options you choose when selecting your insurance coverage will affect your overall premium. Although some options may seem superfluous, certain options are highly recommended. For example, uninsured and underinsured motorist coverage. For a relatively small increase in premium, you can protect yourself against losses in the event that you are involved in an accident with an uninsured or underinsured driver. This type of coverage provides compensation if the at-fault driver doesn’t have insurance, or if your damages exceed the other driver’s coverage limits. A MA car accident attorney can help you recover damages if you’ve been injured by another driver’s negligence.

Altman & Altman, LLP – Boston’s Premier Motor Vehicle Accident Law Firm

If you have been injured in any type of auto accident, the skilled legal team at Altman & Altman, LLP can help. We have been protecting the rights of accident and injury victims for more than 50 years. You may be entitled to compensation for medical expenses, pain and suffering, and lost wages. Our experienced, knowledgeable attorneys will ensure that you fully understand your rights and options before moving forward, and we’ll be with you throughout the entire process. If you have been injured, we can help. Contact Altman & Altman, LLP today for a free and confidential consultation about your case.

 

 

 

 

 

 

Contact Information