How is My Auto Insurance Rate Determined ?
How is My Auto Insurance Rate Determined ? Do you realize the insurance company just thought of a random number to charge you? No they base it on a variety of things. In this article we will cover a couple of those things Driving Record: This is a big influence. It is obvious to insurance companies and you hopefully that the worse you drove in the past means the worse you will drive like in the future. So if you want to not spend all your money on your premium don't drive like a mad man! Vehicle's location: Where do you park your car when it is not in use? Is it on the street in a high crime area. Chances are it will get nicked and the insurance companies know that so they charge more. Where You Drive: If you drive in a place filled with inexperienced drivers on a regular basis then you have a higher chance of getting hit by another car. One again insurance companies know this so they charge higher if you drive in a area with lots of inexperienced drivers. Examples include schools where 6th formers who have just got their licence are driving. Credit score: Quite unconnected to auto insurance or at least most people think so. But auto insurers know that the better your credit score the more responsible you are on the road. Don't ask me how they figured this out! Age of driver: This one is the biggest influence of all (maybe tied with Driving Record.) The older you are equals the more experience you have had on the road. That means to the insurer a lower chance of you claiming. Also insurers view young people as carefree and irresponsible. However don't think that because of your age you can't get good premiums. If you do good in school they often give you a discount as it shows responsibility.
