A Guest Post today -
Most states in the country require drivers to either carry liability insurance minimums, or to carry bonds that prove they can financially afford driving without it, should an accident occur. Cost of insurance per individual depends on a number of factors. These factors are called risks.
The car that you drive can influence the cost of your insurance. Something that has more safety features will cost less than a sports car with a larger engine. Even the color of the car can influence the risk of the vehicle.
The age and sex of the driver also determines the risk. Typically, teenage boys have higher risk than teenage girls. A guy who drives a red sports car is a higher risk than a woman who is the same age driving the same car. Family can influence the cost as well. People with young children are statistically more cautious drivers than those without, so their rates are lower.
The other major factor in determining the cost of insurance is the record of the driver. Someone with speeding tickets will pay more than someone without because the risk of accident is considered to be higher due to faster driving speeds. Someone else the same age with accidents on the record will pay more than those with speeding tickets because of the track record for actually having accidents versus the risk of the speeder getting into them.
The city or state you live in can also influence the risk. Someone living in a more rural area will pay less than someone else with the same car and same driving record who lives in a larger city. This is because larger cities and more populated areas have more accidents. The cost of insurance payouts the company has to make in that particular area is distributed to those who carry insurance in that area. This same idea goes along with the most expensive states as well.
There is also a different class of high risk insurance. Drivers who have high risk insurance are those who have multiple accidents, speeding tickets, or DUI convictions on their driving record. Typically these drivers get their insurance from a pool of insurance carriers who share the risk involved with insuring high risk drivers. High risk drivers are required to get SR22 auto insurance instead of standard insurance.
This insurance coverage is a bit more costly than standard insurance, and it requires the driver to file special paperwork with the DMV to get driving privileges reinstated after a DUI or uninsured traffic accident. Not every insurance company offers sr22 auto insurance, making it more difficult to obtain the proof. The period of time the driver is required to carry this insurance is determined by the courts. In some cases, the insured carries it for a year; in other cases, the insured carries it for 3 years. It typically depends on the offense.
Avoid the need for sr22 insurance by driving safely, and never driving under the influence. If your state requires insurance or bonds, make sure it is kept up to date.