Rhode Island – Factors that Affect Auto Insurance Rates


Every state has a set of rules and regulations that must be followed. Every state has many rules and regulations written specifically for the motorists or drivers on the roads. These rules must be followed at any cost. When one person does not follow these rules and regulations, he must realise he is putting himself and others lives in danger. Any violations will be penalised.

The state of Rhode Island has come out with a set of rules and regulations as well. One such rule would be concerning mandatory insurance policy. The state of Rhode Island, like many other states, has made auto insurance mandatory. The minimum liability is fixed at twenty five thousand dollars per person for bodily injury in the accident and a total of two persons at fifty thousand dollars in total for bodily injury per accident. Property damages costs should be twenty five thousand dollars per accident. Bodily injury covers any medical expenses and loss of wages. Property damage covers any damage you might have caused to buildings, cars, fences or lamp posts.

 When mandatory insurance policies have been made, one would wonder what the factors that might affect my insurance policy and its premium rates are. This article tries to help you out with this. The first factor would be your age. If you are under twenty five, you will be a high risk for the insurance company as people under twenty five years of age are statistically known to be rash drivers. However, people above twenty five are known to be stable drivers and will be charged lower rates. However, if you are between the ages of fifty and sixty five, you will be charged the lowest as you are supposed to be the safest driver statistically. Marriage would play a role as single people are supposed to be a higher risk than people driving back home to a family. Thus, people with a family will be charged lower rates than people who are not married. Your gender will also affect auto insurance rates. Women are statistically known to be much safe drivers and will be charged lower premiums.

The location of your house will also play a huge role. If you stay in the centre of the city with a lot of traffic, the chances of you being involved in a car accident with one of the many cars around you is very high. However, if you stay in a rural area with hardly any cars around you, you are less likely to be in an accident. If your neighbourhood has high crime or theft rate, your auto insurance premium rates will be higher. Another factor affecting your auto insurance rates would be your driving violations. Your past will provide clues as to how good a driver you are. If you have a spotless driving record for the past five years or so, it will play a big part in reducing your auto insurance premiums. The type of your car will also play a big role. A cheap car which does not cost much will have lower rates of premium than a huge SUV.