How Are Auto Insurance Ratings Determined ?
How Are Auto Insurance Ratings Determined ?
When you talk to your friends about auto insurance, you may be surprised at who is paying how much. There are so many contributing factors to determining auto insurance ratings, that sometimes the most unlikely people will be paying the smallest insurance premium. With that in mind, it is important to know how the ratings are determined, so that you can make some wise choices and the get the best rate you can.
The most obvious basis for auto insurance ratings is your driving record. If you have tickets or accidents on your record, then you deserve to pay more for your insurance. However, there are many people who have never had an accident or ticket and have been driving for decades, yet they pay enormously high insurance rates.
This is usually because there are other factors that the insurance companies believe are a little risky. The most common problem that people have is their credit rating. If you have a low credit score, then you are thought to be a risk to an insurance company. Even if you pay your insurance premium in full, your credit score will still be a determining factor, so try and keep your credit score as high as possible.
Another reason why some people have high auto insurance ratings is because of the car that they drive. Your car doesn't have to be a red, hot rod in order to be expensive to insure! In fact, some of the most expensive cars to insure are pretty ordinary in nature, but they are either often stolen or very expensive to repair - so the insurance companies will punish you for having them.
Take a good look at your driving record, your credit record, and the car you drive, and you may find that making a change can help bring your premium down.
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