What Are The Main Influential Factors For Car Insurance Rates

PR Web

LOS ANGELES (PRWEB) January 02, 2020

Cheapquotesautoinsurance.com has released a new blog post that presents the main factors used to determine a person's car insurance rates.

For more info and free car insurance quotes, check http://cheapquotesautoinsurance.com/factors-that-influence-your-car-insurance-risk-profile/

Auto insurance is a risk-based business and companies want to limit the risk of paying too many compensations. Insurers rely heavily on statistics, carefully analyze a series of factors and rate persons using insurability scores. Find out the top influential factors and get free car insurance quotes online from http://cheapquotesautoinsurance.com.

The policyholder's driving history. Insurance companies require for any potential client to disclose at what age they've got their license. A person with 3 or more years of experience behind the wheel is considered experienced. Online questionnaires will ask about the driver's license or permit status (valid/active or suspended). Next, the client will be asked to answer if he or she committed any traffic violation in the past 3-5 years or were involved in an accident. Drivers with multiple claims in a relatively short period of time are considered high-risk, even if they were not at-fault.
The car's exact model. Insurance companies ask about the car make and model, plus body-type (trim), in order to get statistical data about price, numbers of accidents with that model involved and car theft frequency. Furthermore, insurers will take into consideration time depreciation and calculate the current value.
An existing coverage history. Online questionnaires always ask if the user is currently insured. Depending on the answer, the questionnaire may ask about the current provider, how long he/she has been with it and the last liability coverage. Companies want to figure out how likely is for a person to switch the companies during mid-term or after 1 coverage period. These persons are usually considered high-risk and are either avoided or charged more by standard carriers. Companies also check for a history of coverage lapses.
Marital status. On average, married people get better rates when compared with single people with similar ages, backgrounds, and vehicles. Married people are seen as more responsible. Being divorced or separated will increase costs.
Education. Education plays an important role in getting better rates and persons with at least a college degree are also seen as more responsible and able to focus on the driving task ahead. Students with good grades can opt for a discount.

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