Coverage providers take a wide range of personal details into account when rating drivers, and as a result, the price of automobile insurance is different for almost every vehicle owner. To get a quote from a coverage provider, drivers will have to relay a bit of personal data so that the insurer can interpret their likelihood of filing a claim and adjust rates accordingly.
Personal characteristics, like a motorist’s age, gender, and marital status are essential for rating because these details are pretty closely correlated to accident statistics. When considering gender, for example, annual accident statistics show that men are involved in significantly more automobile accidents than women. In 2010, there were over 1,000 male car crash fatalities in Florida, but only about 300 female fatalities. Additionally, claims data show that married drivers tend to be in fewer collisions than other motorists.
Motorists searching for auto insurance quotes online are also required to list their location because where a person lives can play a significant role in how much they pay for coverage. It’s obvious that rates and requirements are different in every state, but premiums can also differ between cities. A vehicle owner living in a densely populated city, such as Los Angeles, will typically pay more for car insurance than someone living in the suburbs. The reason for this is more cars and increased traffic translates into a greater chance of being involved in an accident.
Insurers also typically need to know details about a motorist’s driving record, daily commute, and financial history to produce an accurate estimate. This info is often considered to be some of the most important, and can lead to significantly cheaper or more expensive coverage. For example, vehicle owners with a history of claims and moving violations on their record are likely to be charged more for protection than someone with a good record.
Insurers will also take a person’s vehicle type into account when evaluating risk. If a motorist insures an expensive sports car, he or she will likely pay more for coverage because insurers need to compensate for the possibility of greater financial loss if they need to pay out a claim. Cars that frequently appear on the top of frequently stolen vehicle lists will also net steeper policy prices. Information from the NHTSA shows that some cars are more popular among thieves than others. In 2008, the top stolen vehicles included the Dodge Magnum, Hyundai Sonata, and several Chrysler models.
By knowing the many different things that can influence coverage costs, motorists can make adjustments to get cheaper insurance. For example, if someone is in the market for a new car, they should determine how much various models may cost to insure. Additionally, people can find cheaper quotes if they manage to maintain a clean driving record.
Source: http://www.onlineautoinsurance.com/
