How Are My Insurance Rates Calculated?
This is a question that has crossed every insured driver’s mind. Every auto insurance policy is unique in its own way and most drivers in the nation pay a differnet price for auto insurance. There are many factors which contribute in the calculation of your rates. The below are some of the most prominent.
Driving History
This is probably the most important factor when talking about how your rates are calculated. Your driving history can have a huge impact on your premium prices. Having a bad driving record and previous history of accidents and/or DUI(s) will make you considered to be a high-risk driver, which will bring your rates up dramatically.
Age
This is also very important to most insurance companies. The older you are and more years of experience that you have on the road, the lower your prices will be. Young drivers of ages 25 and below tend to put themselves in more dangerous situations of careless driving, which oftentimes result in accidents.
Gender
Women are generally considered by auto insurance companies to be safer drivers. This is due to the high number of accidents caused by males who speed, run stop signs, red lights, and even drive under the influence of drugs or alcohol. However, with more and more women drivers getting on the road, insurance companies are beginning to change their opinion and gender might soon not be such a great influence on your rates.
Some other factors that will have an impact on your insurance rates are: vehicle type, credit score, education, miles driven each year, accident claims, the number of drivers per vehicle etc.
The best way to make sure you are getting the lowest possible rates for your
qualifications is by shopping around. Don’t rush into making your decision of which auto insurance company to go with.
There are hundreds of insurance companies out
there and some of them might offer great prices for your particular situation.