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14 Insurance Rating Factors |
Below you’ll find 14 rating factors used by some of the most common Insurance companies who offer auto coverage within the u.s.
Type of auto:
Since some cars are proven to be more of risk than others, the type of car you drive will help determine your overall rate. During the quote process each vehicle is given a risk I’d number. The heavier the car, the more damage it can cause to another vehicle of structure.
Braking system
Anti-lock braking systems are now installed on most newer cars. That means not ALL cars will have them and Insurance companies will continue to ask.
Safety features
Does your car have front and side airbags? The more safety equipment installed in your vehicle, the more affordable your Insurance will be.
Alarm systems
The more you go out your way to protect your property, the less risk the insurance company will have to insure. Alarms systems greatly reduce the risk of your vehicle being stolen.
Gender
It has been proven in many states that female drivers have fewer accidents than male drivers. Since these two groups of people are so large, Insurance companies can use this data for rating purposes.
Age of driver(s)
The more experience the driver has, the more likely they will drive responsibly. Younger drivers are known to be more likely to get into an accident compared to more experienced drivers.
Line of work
If you happen to work for certain organizations or hold government position you may be eligible for additional discounts. Some carriers may rate you by the amount of stress a specific job may have on the person. If you drive with a clear mind you’ll be able to make good driving choices.
Distance of commute
The longer you must drive to work, the more risk you will face compared to someone who drives shorter distances.
Driver credit
Companies will rate you on your credit score. Insurance companies have also developed their own scoring system known as an insurance score. The higher the credit score the more responsible and reliable they view that driver.
Garage/Parking Address
If there is a high count of traffic accidents near your garaging address, the more your risk rating will be. If your garaging or parking address is somewhere remote such as a small town, the less risks you will face compared to someone living in a highly populated area.
Homeownership
Owning a home not only shows financial responsibility it also attracts the insurer to the possibility of selling you a homeowners policy. Most companies offer heavy discounts for combining both policies with the same Insurance company.
Marrital status
Marriage has its benefits and one benefit is the lower Insurance rates that come to those who are married.
Driving history
Nothing says your a high risk like a bad driving record. For lower rates its especially important to keep driving safe and responsibly.
Claims history
If you have a number of claims on your insurance history, companies may only assume you may have more. What if all claims are small for example they’re all windshield replacements? Even these can increase your rate with time. If every year for the last five years you made a windshield claim, your next insurer can only assume they will eventually have to pay for a windshield.
Learn more about auto insurance discounts.
