The Auto Insurance Rating System – How Your Rate is Determined

If you live in The United States and you own a motor vehicle, you have to buy a plan. Many people get confused, however, at how insurance agencies determine your rate. Here are a few areas that factor in the car insurance rating system.

The model you drive. The model you drive is an extremely important part of the automobile insurance rating system. Insurance companies want to insure safe vehicles. The safer your motor vehicle may be the decrease your rate will probably be. If you drive a vehicle that’s supposed to drive slow, being a mini van, you will find a lower rate. Models that are supposed to be driven fast, like convertibles and sports cars, will have a better rate.

Where you insure your automobile. The location is yet another essential aspect inside automobile insurance rating system. This is because some states have a better record than other states. Louisiana, as an illustration, carries a high rate of uninsured drivers. This adds to the insurance rate for all else. Also, if you live in a state that has a lot of accidents, or many DUI arrests, you will have to pay a better price.

Your driving record. Almost all insurance companies will look at your record before they issue out a plan. This is because nearly all companies award safe driving. If you do not offer an accident, or even a traffic ticket in your record you will definately get a lower rate. Most companies will search 3 years back in your history for CBIS traffic violations. If you do come with an accident in your record, you can lower the price by driving safe.

Another factor that switches into your insurance price, is the quantity of times which you report a claim. If you constantly report claims, your rate goes up.