Auto insurance companies rates are influenced by many factors that determine the rates a customer sees when asking for quotes. These rating factors determine what your rate will be. Each state is different to the factors they use; some State Departments of Insurance have ruled certain factors out and have listed them unethical.
Rating Factors:
Location;
Larger urban area’s are more expensive to insure due to heavier traffic, more accidents and higher claims. Rural area’s on the other hand will be less to insure since there is less traffic, fewer accidents and fewer claims. Single/Married – Single males under the age of 25 have more accidents than married males, so single males have to pay more for their auto insurance.
Limits of Insurance;
Increasing liability limits, can increase your premiums since the insurance company would have to pay more if you are found liable for an accident. However, most importantly you choose the limits to best protect you and your family.
Age;
The more experienced or older the driver, the lower the rate. Rates can seem unjust for new (student) drivers.
Vehicle Usage;
When driving your car strictly for pleasure your rates will most likely be less since you drive less. Using your auto for business use you will face higher premiums due to increase driving and more liability. Most people use their cars to drive to work and pleasure, which is usually rated somewhere between pleasure use and business use.
Male/Female;
Since women have less car accidents than men, their rates tend to be lower.
Driving Record;
There are two reports normally used to determine your driving record. A motor vehicle record, or MVR, and a C.L.U.E. report. The MVR tracks automobile claims, and the C.L.U.E. report tracks claims you have made for any type of insurance. The more accidents and tickets found on your record, the higher your insurance rate.
Make/Model;
Without getting into too much detail, more expensive cars call for higher insurance rates. However, it is important to note that this is only the case if you request physical damage coverage If you do not request this coverage, the insurance company is not responsible for repairing or replacing your car in the event of an accident.
Deductible;
Keeping your deductible high, can keep your insurance rate lower.
Remember prices differ from carrier to carrier, so it pays to compare car insurance quotes. Get at least three price quotes. This can easily be done and it is quick and easy just click on the link. Fact: Compare Car Insurance Quotes save an average of $550 last year (your rates may vary).
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