Myriad companies operate in the market; skim through to know which one would suit you best. Compare the premium rates offered and then choose. To know how auto insurance rates are fixed and what the various determiners are, read on further.
There are various criteria that influence the insurance rates offered to you. The Auto Insurance companies measure the risk that each customer poses through their numerous personal variables. A driving record is the most important of these. Other than your driving record, what these companies want is your age, marital status, sex, vehicle classification etc. Recently, credit history has also started being assessed during calculation of premium rates.
Driving Record
This is the most obvious and most important of all variables. If you have an experienced and clean driving record, your being responsible behind the wheel is amply proved. Insurance companies, if satisfied on this ground, can propose really low rates on insurance policies. A tainted driving record, obviously, works against you and you end up paying more.
Automobile Classification
Compact cars and luxury cars are charged lesser as compared to sports vehicles and muscle cars. Motorcyclists can also get a low premium as the damages caused by motorcycles are relatively less. Automobile model and make is therefore, always asked for.
Age
The age group of 16-25 years is considered to be the most accident prone. There is impressive statistical evidence against youngsters of deviant rule-breaking behaviour, risk taking, rash driving and drunken driving. So, if you are a young driver, you fall in the category of high casualties group. Be prepared to pay more on your auto insurance cover.
Gender
Figures claim that women are less involved in accidents as compared to men. This distinction is more pronounced among the young group of drivers and usually dissolves with maturity. Males are considered to be more aggressive, defiant and rash; thus more accident-prone. This is why men have to bear with this gender discrimination issue and pay more for their liability coverage.
Some Other Determiners
Often companies offer lower rates to married drivers. Marriage signifies maturity and responsibility in a person. Quite recently, auto insurance companies have started probing the Credit ratings of their customers as well. People with a good credit history are thought to be equally responsible while driving; thus they get lower premium rates. This criterion has been criticised and opposed for being ?elitist?.
All this data is compiled in the statistical form. An actuary is then derived from these figures. It depicts the chances of future insurance claims. Premium rates are determined accordingly. It's best to ask for free auto insurance quotes from a few companies that you are interested in dealing with. Quotes can help you compare and decide on the best insurance cover. Wishing you lots of luck ahead!
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