How do insurance companies determine rates?
Insurance companies keep very detailed statistics on the drivers they insure. These statistics help insurance companies predict the likelihood of your having an accident and determine the underwriting rules they should impose.
To assess your risk, the insurance company looks at your personal characteristics such as
• gender
• where you live
• how you use your vehicle
• how far you drive each day
• who else is driving the vehicle
• driving record and accident claim history of all drivers
• value of your vehicle
• type of vehicle, including theft rating for that vehicle type
• the type of coverage you chose
• deductible amount
Insurance companies may not use age or marital status in determining your risk classification after November 1, 2004. Premiums are also based on the specific coverages and deductibles you choose for your policy. If you buy optional coverages, you will pay more.
To assess your risk, the insurance company looks at your personal characteristics such as
• gender
• where you live
• how you use your vehicle
• how far you drive each day
• who else is driving the vehicle
• driving record and accident claim history of all drivers
• value of your vehicle
• type of vehicle, including theft rating for that vehicle type
• the type of coverage you chose
• deductible amount
Insurance companies may not use age or marital status in determining your risk classification after November 1, 2004. Premiums are also based on the specific coverages and deductibles you choose for your policy. If you buy optional coverages, you will pay more.