Auto Policy? 10 pts best answer!?

Question

what determines the cost of an auto policy?

Answer 1

Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement.

The best thing to do is call a LOCAL independent agent. Don't go across town, or to some other city - look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies.

An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can.

In my agency, we have companies that do NOT run a credit score and welcome drivers with "less than perfect" driving records and specialize in youthful operators!

Most of the replies on this site say "go to this on-line carrier or that on-line carrier or that 1-800 number" but I'm sure that when you do, you will find some impersonal computer user with a script to work from and you won't be able to talk with the same person every time you have a problem!

Good luck, drive RESPONSIBLY and I hope this helps!

Answer 2

Visit for your answer

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Answer 3

Car value, coverge requested, location, car usage, insured driver record, insured driver age.

Answer 4

There are many aspects that come into play when determining the cost of an auto policy including the level of risk and the value of the vehicle.

The level of risk is determined by many things including the drivers, the territory and how the vehicle is used.  For example, a young single driver that delivers pizza and lives in an urban area will pay a much higher premium than a middle aged married driver that lives in a rural area and only uses the vehicle to make trips to the grocery store.  Drivers with tickets and accidents demand more premium because they are a higher risk.  The premium on commercial vehicles is normally more than private vehicles.

The value of the vehicle will be much higher on a Porsche than on a Yugo so the physical damage part of the insurance will be much higher as well.  Repairs are more expensive and the bill could be much more before a car is considered totaled.  

That isn't all that goes into determining a premium, but it is a large portion of it.

Answer 5

Coverage options, Vehicle type/model, driving record, age, marital status, miles driven per year, s*x, and Company you select for coverage.

Answer 6

how old you are if youve had any previous claims where the vehicle is kept if its alarmed theres loads of ways to get  a good quote if your a good driver

Answer 7

amust240 gave you probably the best answer and in #11 - financials, just about all companies use credit as a basis for auto insurance. Not all companies use credit the same - some weigh it more heavily in scoring than others, that is why it pays to shop around for insurance. All these factors are used differently by insurance companies.

Answer 8

There are numerous factors that determine the cost of an auto policy.

There is the vehicle itself, you're driving history, your claims history, depending on your state your credit (to an extent), applicable discounts, the city, state and territory you live in. I have issued polices where people move , literally, two streets over and the premium changes because of the "territory" within the same zip code.

If you are under 25 your age, years of driving experience and marital status, and possibly gender can affect the cost of the policy as well.

And of course rates vary from company to company.

If you do have tickets or accidents, beware. Some companies will quote you a lower rate and they legally have sixty days to consider your driving history and increase your rate.

Be sure to ask that you are getting the best rate as of the quote.

Knowing this I once got a quote from a large insurer at about $500. I pressed the service rep to factor in my not so great driving history and the rate doubled. Had I not known what I did and took the policy I would have had a very unpleasant surprise.

Answer 9

1. type of vehicle

2. location that the vehicle is garaged

3. liability limits

4. types of coverages purchased(i.e.-comp, collision, rental)

5. age & s*x of the primary driver

6. driver's claims history

7. driver's driving history(i.e.-DUI's, tickets)

8. marital status

9. how many vehicles are insured on the policy

10. any other policies with the company(i.e.-homeowners, life)

11. financial history(i.e.-bankruptcy)

I'm sure there are more......but this is all I can come up with at the moment.