Auto insurance Rates
Generally speaking, the formulae used in calculating car insurance rates are very so complex and have lots of factors that will be considered. No expert have device means to do this free hand unless with the use of super computer. As days continue to go by, it becomes more complex to handle. However, this article will highlight the fundamentals of how you can have idea of car insurance rate you will pay on your vehicle. Learn how to calculate your auto insurance rate now.
KEY POINT TO NOTE:
In a broad sense, insurance are mainly regulated by the state laws which might be liberal in liability or conservative. Meaning that a particular county or state were you reside controls how insurance is been run in that particular states. This means that different states will have different car insurance rates. In some countries, the laws are regulated by the federal government who appoint insurance body to head insurance activities in that particular nation.
Beyond these states or federal laws, these factors will determine how your car insurance rates or figure can be estimated;
This plays a vital part in determining your car insurance rate. Many auto insurance companies have compare there data for many years and found out that people with the age bracket of 16 to 24 years always have higher car insurance rate. This is because of the risky nature of this particular age bracket when driving. They are considered to have higher rate of accident. Those that are from 25 years to 49 years old should expect lesser car insurance rate when compared to those on 16 to 24 years of age bracket. Those from 50 to 64 years old most of the times are classified to be not too risky to insure. This is because they end to drive slowly and not over speeding and most of the times, obeys traffic laws. For people in age bracket of 65 and above, they are also classified to risky to insure due problems such as bad eye sight and at times, lack of concentration while driving.
Your gender also plays an important role in estimating your car insurance rate. Women are by far favoured when compared with their male counterparts. This is because statistical data gathered by car insurance companies for years have shown that they have few cases of car accident and have worked with car insurance agencies effectively to settle disputes when accident occurs when compared to male. Also, they drive careful, avoid over speeding and most of the times, obey traffic laws when compared to male.
Married people are also favoured in calculating auto insurance rates when compared to singles. Results from past shows that married people from the age of 18 to 30 have fewer cases of accident when compared to single peers.
SAFETY FEATURES IN YOUR VEHICLE:
The more safety features in your car the lesser your car insurance rates. Also, if you have a safety car garage where you park your vehicle the lesser will be your car insurance rates. People that park their vehicle in street where crime rates and theft is high should expect a high auto insurance rate.
Do you have a good driving record or history expect a lower car insurance rate? People with poor driving history are considered by car insurance company to be more risky when compared to those with good driving history.If you have an accident and wants to make a claim, follow these rules to write your car insurance claim letter. Results collected from various vehicle insurance data base have proved this with a strong correlation.
CRIME RATE IN YOUR AREA OF RESIDENCE:
If you reside in an area or have your address in area where crime rate is high, expect higher car insurance rates due to theft and crime. Once your address indicates that you are living in these areas, car insurance company considers insuring your car risky.
SUMMATION OF THESE FACTORS:
When these factors as well as some other criteria auto insurance company puts in place are considered, a mathematical factor called “RATING FACTOR” is assigned to the individual under consideration. This rating factor which is vital is multiplied to “BASE RATE” to estimate the type of car insurance coverage you are taking. Example, a particular auto insurance company may price a particular coverage 500 dollars per year for a specific person. After evaluation, he’s assigned a rating factor of 1.5. This means he has to pay 750 dollars per year which is calculated 500dollars multiply by 1.5.
It is important to also note that different car insurance company have different criteria to estimate rates and rating factor but majority puts the above mentioned factors into consideration. This is the key reason you get different quotes when ever you shop around for car insurance coverage.
In summary, the higher you’re rating factor, the more you pay in your car insurance coverage and the lower your rating factor, the lesser you pay.
Use these strategies to get CHEAPEST CAR INSURANCE RATES AND QUOTES. CHECK IT OUT