What Affects Your Insurance Rates?

Auto insurance rates are determined by comparing two important factors: Calculated risk and Payoff amount. These factors have many variables to help determine your overall monthly rate. For example, drivers under the age of 25 can expect to pay more for auto insurance than the most of the United States; throw in an eccentric sports car with a metropolitan address and your calculated risk increases. This means you?ll pay more.

Auto insurance companies award cheaper rates to low-risk customers or customers with the lowest calculated risk. Customers in the highest risk bracket are charged the highest monthly rate. Calculated risk is determined by an algorithm which compares drivers to drivers based on many variables such as age, sex, driving record, location, and the type of car you?re driving. * Other factors may be considered depending on your auto insurance company.

Your driving record plays an important part in determining your monthly rates; it is advantageous to keep a clean driving record and to follow safe driving techniques. For more information, please visit the Safety Tips section where you can learn safe driving techniques as well as proper car maintenance.

When registering for auto insurance, you will be required to answer questions which will determine your payoff amount. Payoff Amount is the amount of money auto insurance companies must pay its customers after an auto accident. Some of the required information will be your cars? year, make, model, etc. and how much you?d like to be insured for property and medical damages.

By paying close attention to your Calculated Risk and Payoff Amount, you can be more in control of your monthly insurance rates.