Insurers look at many factors to determine if an applicant is eligible for one of its programs and to determine what the premium will be. Common factors include:
Driving record
The company will ask for information about accidents and moving violations/convictions for any driver to be covered by the policy for the prior 3 to 5 years.
The location where the vehicle will be kept and/or driven affects the rates. Some areas have higher rates of collisions, while others may have higher theft and vandalism rates.
Gender and age of drivers
Statistics still show that males have more accidents than females; statistics also show some age groups have higher rates of claims than others.
Marital status
Claims records indicate that married policyholders have fewer claims than unmarried policyholders.
Companies will ask if you have been insured, and whether you have been canceled or non-renewed in recent years.
Miles driven and use of vehicle
The use of the vehicle (driving to work or school, pleasure use, business use) and the number of miles driven will affect the premium. Higher daily or annual mileage and some types of usage create a greater exposure to claims.
Make and Model of vehicle
The type of vehicle driven will directly affect the premium.
Licensed drivers in your household
Any licensed driver in your household may affect the premium. "Licensed" includes an operator with a permit.
Claim history
Insurers will ask about any claims that you or any driver had during the past three to five years.
Credit history
Most insurers also consider your credit history to determine the appropriate premium to charge. Companies must comply with the requirements of the Federal Fair Credit Reporting Act in their use of this information to come up with an insurance score.
Discounts
Companies offer discounts for insuring multiple vehicles or having other policies with them (such as a homeowners or renters policy), for taking driver education courses, qualifying as a good student, having safety devices, low mileage, and good driving records.
Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose.
Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose.
Insurance premiums depend on a variety of factors, including the type of coverage being purchased by the policyholder, the age of the policyholder, where the policyholder lives, the claim history of the policyholder, and moral hazard and adverse selection.
Some factors that affect life insurance costs include your age, gender, health, family medical history, lifestyle and occupation. Insurance companies base life insurance rates on several key factors.
Your age, sex, smoking status and overall health come into play and have an impact on your premiums. While it's important that your premium fits within your budget, there are other things you should consider as well.
The insurance premium is the sum of money an individual or business must pay for an insurance policy. The amount of insurance premium that is paid out by the policyholder to the insurance company depends on a variety of factors.
Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can make your car insurance payments less expensive.
Introduction: My name is Aracelis Kilback, I am a nice, gentle, agreeable, joyous, attractive, combative, gifted person who loves writing and wants to share my knowledge and understanding with you.
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