What Factors Do Auto Insurers Consider?

Mar 06, 2012 (0) comment

Have you ever compared the car insurance premiums you pay with a friend who has a car similar to yours and lives in your Bay Area neighborhood?  You may have been surprised to find that you pay different Bay Area insurance rates for your cars, and perhaps you are wondering what factors affect car insurance rates.


Premiums for car insurance – and other types of insurance – depend on how risky the insurer considers you to be. Insurance companies use historic data on insurance claims to assess the risk of insuring different groups of policy holders. Some of the factors that influence car insurance rates may be obvious, while the reasons for using other factors may be more obscure.

Your driving record plays an important part in determining the risk of insuring you. A driver with many violations is likely to pay much higher car insurance premiums than a motorist who has a clean driving record.
How far you drive your car in a given period will influence the likelihood of your being involved in a car accident; a driver who commutes long distances to work five days a week is a higher risk than a motorist who drives only a few miles each week.
Age, sex and marital status all play a part in determining car insurance premiums. Past claims data suggests that older motorists (up to about age 70), females and people who are married are less likely to be involved in car accidents.

These are just a few of the many factors that influence Bay Area insurance premiums for cars. Knowing the factors that affect car insurance premiums may help you in deciding the type of car to buy next time or how you will use your car. 

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