Automobile Insurance rates are determined through underwriting. Underwriting is the process by which an insurance company considers your application and evaluates your driving record and other factors to see if you meet its guidelines.
Insurance companies use a variety of factors to determine the level of risk each applicant presents. Each company will use its own underwriting guidelines.
Some of the most common factors are your driving record, where you live, type of automobile and use of automobile. When you request an automobile quote, you may be asked questions regarding these factors.
Your driving record will have the largest impact on your insurance premium. Maintaining a clean driving record can pay off.
Where you live (population density, road conditions, repair rates, number of accidents) will also affect your rate.
The type of automobile will identify the likelihood of theft, cost of repair and replacement, the style of the vehicle, and will influence your premium.
The use of the vehicle, if it is driven to work daily or only driven occasionally will also affect the premium.
You may want to ask if you are eligible for any discounts. For example, anti-lock brakes, anti-theft device, air bag discount. You can lower your premium by increasing your deductible for comprehensive and collision coverage.
C. Bruce Matthews
TruOptions Personal & Commercial Insurance, LLC