Auto
insurance companies evaluate your risk for a claim by using
numerous factors. For instance, if you have had any accidents,
tickets or claims on your record in the past 3 years, your rates
may be higher. Below are several factors that many insurance
companies take into consideration when determining your auto
insurance rates:
Gaps In Auto Coverage:
Many auto insurers look at
your auto insurance history to help determine the kind of
driver you are and the risk involved to insure you. Usually,
auto insurance companies consider drivers with gaps in their
coverage as more risky than those who maintain coverage
consistently.
Driving Record:
Your driving record is weighed
heavily when factoring in your premium rate. If you share
your policy with your family, spouse or domestic partner,
remember that their speeding tickets, claims, etc. will
affect the policy rate as well.
Your Zip Code:
Statistics have shown that those who
live in highly populated areas tend to have more frequent
but less severe accidents while those living in rural areas
tend to have fewer but more severe accidents. Also, if you
live in an area that has a high theft and claim rate, you
can expect to pay a higher premium rate to offset these
costs.
Your Vehicle:
Some vehicles cost more to repair than
others and some are more likely to be involved in accidents
or be stolen. In some states, you can save on your auto
insurance if your vehicle has anti-theft devices or certain
safety features.
Mileage
You Drive: The more you are on the road, the higher your
chances of being involved in an accident. In general,
insurance companies charge more for drivers with a higher
annual mileage driven. However, some companies offer a
discounted rate to older policyholders that limit their
driving.
Your Credit
Rating: Many insurance companies use credit ratings to
help determine insurance rates. Research has shown that
credit ratings can actually help predict ones accident
potential. A higher credit score may lead to a lower
insurance rate.
xml