What are auto insurance rates based on and why do some companies cost more than others?
July 17, 2010 - 2:17 am
There’s many criterias insurance companies factors in for price. Here are a few (in no particular order)…
- Driving record
- Age
- Years licensed
- Vehicle
- Zip code
Some companies will specialize in certain risks. For example, Company A specializes in younger drivers while Company B specializes in older drivers, and the prices reflect that. They usually file with the state’s Department of Insurance, and the insurance company will state their case to them, and the DOI will determine whether the pricing is fair for other carriers to compete with.
July 17th, 2010 at 7:46 am
There’s many criterias insurance companies factors in for price. Here are a few (in no particular order)…
- Driving record
- Age
- Years licensed
- Vehicle
- Zip code
Some companies will specialize in certain risks. For example, Company A specializes in younger drivers while Company B specializes in older drivers, and the prices reflect that. They usually file with the state’s Department of Insurance, and the insurance company will state their case to them, and the DOI will determine whether the pricing is fair for other carriers to compete with.
References :
Insurance Agent in California
July 17th, 2010 at 8:06 am
They are based on
Age
Sex
Race
Type of Vehicle (make, model, year)
Prices vary because different companies offer different forms of coverage and still try to be competitive in the market and make a profit
References :
July 17th, 2010 at 8:23 am
There are lots of different factors that insurance companies use to determine your auto insurance rates. Some companies are more picky and charge higher rates than other companies. It just depends on the company. Some companies only want drivers with good driving records and will charge outrageous rates for high risk drivers. Some companies don’t mind having drivers with a poor driving record and won’t charge as high of rates.
That’s why it is so important that you compare rates from multiple insurance companies before you decide which one to go with. If you don’t you could end up paying too much.
References :
http://savetodaycarinsurance.com/
July 17th, 2010 at 8:35 am
Most companies have actuaries that do rating. Based on location, type of car, your coverages, age, driving experience, driving record, etc. I recently became insurance consultant so if you have any more questions or want a quote, email me.
ada_chan@countrywide.com
References :