Rating Factors for Auto Insurance

Posted by admin on Apr 27th, 2010 in Auto Insurance, Featured Articles, Insurance | 0 comments

Auto insurance companies will use your driving history in deciding what rate they will give you. The type of car you drive is also part of this decision.  Some cars will certainly cost more to repair and data shows that accident rates are different for different cars.

What you use the vehicle for will be another consideration.   For example, if you use the vehicle for work, that will probably  raise you premium and your age and marital status will effect your rating as well.  It is typical for older drivers and married drivers to have a better driving record and this fact will let them have the lower premiums. Where you live is also taken into consideration because some states will have higher accident rates than other states.   A city with a high population density will obviously have more accidents more often.   Insurance rates are also effected by local factors, like the type of insurance system that is working in that state.

If you are a new driver or you have no previous history of auto insurance coverage, you can look forward to higher rate for sure.  New drivers are new to the streets and not accustomed to driving in traffic and will take time to get used to it.   All drivers have been in their shoes when they  were new driver.