Auto Insurance Policy Rating

Your Premium Rating depends upon the following Factors. This Factors based on companies discretion can also be grouped into Tiers (Risk Levels)  and can be then used as part of Tier Rating Model.

1.Your driving record

Your driving record is weighed heavily when it comes to determining your auto insurance premium. In many states, if you have a good driving record, you can receive a good driver discount. However, if have a speeding ticket or an auto insurance claim on your record, you should expect to pay higher auto insurance rates.

2.Your family’s driving record

If you share an auto insurance policy with your family, spouse, or domestic partner, you may be eligible for a multi-car/multi-driver auto insurance discount. However, be warned that combining policies will also mean that you share in your family’s speeding tickets and auto insurance claims— which, if present, will mean higher auto insurance premiums!

3.Type of Vehicle (model, year, and value):

Statistics show that the accident rates are different for different cars. Some kinds of cars are also more expensive to repair.

4.Vehicle Usage (i.e., pleasure, work):Using your vehicle for work will probably increase your premium.

5.Age,sex and marital status:

Older drivers, female drivers and married drivers statistically tend to have better driving records. Therefore, they tend to have lower premiums.

6.Where You Live:

Some states have higher accident rates than others. In particular, states with high population density tend to have more accidents. Other local factors, such as the type of insurance system in the state, also affect insurance rates.

7.Prior Insurance Coverage:

Being a new driver, or a driver with no previous history of insurance coverage, will probably mean higher rates.

8.Your Credit Score

Over 90% of U.S. insurance companies use credit-based insurance scores to establish eligibility for payment plans and to help determine insurance rates. If you have a high credit score, you can generally expect lower auto insurance rates than someone with a low credit score.  

Discounts:

Based on requird qualification/eligibility Rating determines applicable Discounts that can be used in reducing the Actual Premium.

Few of the Common discounts available across the Industry are as listed below: 
  • Good Driver Discount
  • Good Student
  • Car with Anti-theft and Security features Discount 

Surcharge:

Surcharge is additional fee or tax per state regulation charged in addition to actual Premium. Rating determines this surcharge and includes it with Actual Premium. Some Insurance companies impose higher surcharge for  high risk/less preferred insured.

 
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