When every individual goes to purchase automobile insurance, the general concession is that there are certain factors in an individual’s history that will factor into a policy rate. An insurance company must know certain facts about a policy holder’s history to best insure itself against damages and make sure the customer is getting adequate coverage. But when that quote is placed in front of a potential customer there are also other, not so obvious components that may have helped determine that individual’s price.
The Standard Determining Factors For Auto Insurance Rates
Certain aspects of a driver’s personal history and vehicle are inherent to the insurance process. The most obvious being the driving record. The worse a record, the higher the insurance premiums. Depending on the type of car being driven, where it’s located, and the purpose of the vehicle, premiums can be higher or lower. Age and gender are taken into consideration. These are some of the main examples and are based on collected data. For example, in a study conducted by John Hopkins School of Public Health, even though it revealed that overall, men get into less crashes than women, they are three times more likely to die in an accident. These are things insurance companies study. [Read more...]