Common Auto Insurance Rating Variables
Credit — credit is a metric that has been used in insurance scoring for many years. The better your credit, the more favorable your rates will usually be. Car — the type of car, engine size, safety features, etc.. are all par of the rate of course. Driving History — your driving record and loss history plays a substantial role in the price. If you have a spotty driving history, or multiple moving violations or accidents, chances are, you won’t get a preferred rate until those things are at least 3 years old. Household — insurance companies underwrite at the household level, meaning they try to judge based on the entire household, what the probability of loss will be. If there are multiple drivers in the house who are under the age of 25, that will impact everyone’s pricing in the household
Important Auto Insurance Coverages
Helping you understand your policy is one of many things we do as your Insurance Agent. Here are a few common terms that are worth explaining now. Collision Coverage covers damage to your car in an accident with an object. Comprehensive Coverage covers non-object damage, like theft or hitting an animal. Property Damage covers damage you cause to someone else’s property. Bodily Injury Liability covers the other party’s medical bills if you injure them in an accident. Uninsured/Underinsured Liability covers you if the other party doesn’t have enough insurance. It’s important to have adequate coverage since you can’t control other drivers’ insurance. We can help make sense of each coverage so you can confidently customize your policy to what you need.