• The at fault driver

Often insurance companies increase rates if a driver who registered a claim was the one at fault. However, the rate may be kept the same if the driver is not the one at fault, but the other driver. There are some exceptions in which can still lead to increased auto rates. These include the driver involved in an accident receiving increased rates thought was not at fault; rates are increased because the driver statistically is more likely to be involved in another accident in future and pose more risk to his/her insurance company. In addition, if a driver lives in a non-fault state, the insurance companies pay for particular portion of the costs, and the rates may be inc reased regardless of who caused the accident.

• The severity of the accident

Damage due to an accident range from just a scratch on paint to complete crumbling of the car. Thus greater extent of damage has higher possibility of leading to increased premiums because the car insurance company will be required to pay a larger compensation.

• Driver’s value to the company

Drivers who have very long history of safe driving and have stayed with the insurance company for long period of time, often do not experience increased rates in their premiums than those drivers with poor driving records.

• Insurance company policy

Every company has its own unique policies that specify the effects to customer’s insurance rates in case of theft, an accident, or any other type of claim. For example, an insurance company may increase customer’s premium for any claim regardless of the magnitude of the claim, or even if the accident was not due to the factors relating to the driver.

Other insurance companies may not make any change on insurance rates if there were minor damages, was the first accident, the accident was not due to the driver’s fault, or the driver has a good driving record.

New drivers on the roads must ensure to be very careful and participate in it so that they can be assessed for suitability do drive safely on roads. This is because in it not adequate for someone to know the road rules; he/she must also adhere to them while driving on the roads and must have competent skills to handle the car properly.