Car insurance companies consider several factors before deciding to offer to insure a person who applies for coverage. Each one has its own formula for determining the level of risk that a particular driver presents. Some of the factors that affect car insurance rates in Georgia are the type of vehicle, the applicant’s driving record and where he or she lives.
The type of vehicle matters because certain makes are more likely to be involved in accidents or stolen. A person who decides to drive a sports car can expect to pay more for his or her car insurance coverage than the individual who buys a more family-friendly vehicle. If a car insurance customer decides on a vehicle that is often the target of thieves, that fact is considered by the insurance company as well.
When an application for coverage is received, the insurance company will pull the individual’s driving record. It looks at past conduct as an indication of future behavior. Unfortunately for a person who has been unfortunate enough to have been involved in an accident or who has several moving violations, it means paying higher rates for coverage.
Location comes into play when determining Georgia auto insurance rates as well. A driver who lives in an urban area with lots of traffic is more likely to be involved in an accident, and that person may be charged higher rates than a rural resident of the state.