Today, most states are requiring drivers to buy and carry their own car insurance in order to spare themselves from financial problems in the event of a car accident. The type of insurance a driver is supposed to have depends on the state where he lives in -- for example, drivers in California are required to have liability insurance.

This insurance pays for all the damages you (the insured) have caused to the other driver or the people who are inside his vehicle at the time of the accident. Remember, it only pays for the other party's expenses, not your own.

The two types of liability insurance are known as property damage and bodily injury. Property damage covers expenses that were incurred due to the need to replace or repair things that were destroyed or damaged in the accident. Meanwhile, bodily injury covers lost wages, rehabilitation expenses, and medical bills.

Although all drivers in the state are required to have liability insurance, the amount of their premiums will not be the same. Insurance providers often base the car insurance's premiums on these factors:

  • Gender- Insurance companies tend to use a person's sex as a basis when determining the amount of premiums a driver will have to pay for. According to statistics, women are more cautious than male drivers. This means female drivers will less likely to be involved in a car accident compared to the opposite sex.
  • Age- Statistics show that drivers who are below 25-years-old are more likely to be involved in a car accident compared to older drivers. In addition, records also show that drivers who are in the age bracket of 50 to 60 have a cleaner driving record.
  • Driving record- If you have been cited for speeding, failure to stop at a red light, or other traffic violations, the insurance company will be completely aware that you have disregarded traffic rules in the past. This will put you in a bad light, meaning you will likely have a higher premium to pay.
  • Type of car- if you have a cheap car, you will likely be required to pay a low insurance premium. However, if you own a luxury vehicle, prepare yourself to face high premium rates.
  • Marital status- If you are married, you will likely pay a lower premium compared to an unmarried driver who has the same driving record.

If you have more questions about car insurance premiums and the factors that can affect them, do not hesitate to call a Los Angeles personal injury attorney.