Car insurance rates are calculated based on a variety of factors that help insurance companies assess the risk of insuring a driver. Factors that can impact rates include, but are not limited to: gender, driving history, location, and what type of vehicle is owned by the driver. However, one of the most significant influences on rates include a driver’s age. Typically, younger drivers pay more for car insurance than older drivers since insurers view younger drivers, especially those under 25, as a higher risk because they are statistically more likely to be involved in car accidents and other adverse events.
Numerous data sets demonstrate that drivers under the age of 25 are disproportionately involved in car accidents compared to their older counterparts. Although drivers under 25 comprise roughly 5% of all licensed drivers, they account for around 8% of all fatal crashes. Additionally, drivers under 25 are also more at-risk for alcohol and drug related accidents.
Elevated insurance premiums for younger drivers are also attributed to things such as inexperience, lower rates of seat belt compliance, and a higher likelihood of engaging in risky behaviors such as distracted driving and speeding.
While it may appear discriminatory, insurers use statistical data, complex AI and algorithmic calculations, and state regulations to set their rates, making sure they maintain profitability by identifying and acting on the various risk pools that exist among their customer base.
As a personal injury law firm, a major role of our attorneys includes negotiating with insurance companies for things such as medical expenses, lost wages, and pain and suffering. Oftentimes, insurance companies do not play fair and it’s our job to advocate on behalf of our clients to ensure they are compensated for their injuries and losses. In instances where a settlement cannot be reached, taking a case to trial may be necessary, although on average, this only occurs about 2% of the time. Even though most claims are settled out-of-court, an attorney must still be fully prepared to present a case to a jury. For this reason, hiring an experienced lawyer who thoroughly understands how insurance companies work is a must.
At Hurst Limontes, our team of attorneys have over a century of combined experience fighting for and recovering for our clients who are being treated unfairly by insurers. If you’ve been injured in an accident in Indiana or have any related questions about rates and coverage, feel free to contact our office.
Call us at 317-636-0808 for a free consultation or complete the contact form below.
