How Insurance companies determine quotes for car insurance?

Question

How Insurance companies determine quotes for car insurance?

Answer 1

It's largely based on the company's historical risk profile of

1) The type of car & it's value (sports cars are a higher risk)

2) Where you live (There are more thefts etc in some areas than others)

3) Your age, s*x and possibly occupation (Women are less risk as are older people)

4) Your driving record (how long, how many claims etc)

Some companies also don't really want certain types of business so they quote over the top.

I've never heard of credit checks being used, but I'm talking about the UK may be different elsewhere, but not sure why they would be.

Answer 2

It's to do with risk factor. How likely you are to get an accident and claim.

Answer 3

Try using http://My-InsuranceSearch.com to compare car insurance rates for all the major providers in your area.

Answer 4

Your driving record and your credit report

Answer 5

For car insurance the best way to get a fantastic quote is do a rate comparison on auto policies. Make sure that you compare similar policies with the same limits, auto make, location, etc so that all things are a good comparison.



What I usually recommend is an internet comparison quote at http://www.InsureAutoNow.info since they have lots of insurers and will give multiple quotes on auto insurance polices.

Answer 6

I have tried it myself, here is some good informations.http://car-insurance.online-tips.info/ca...

Answer 7

Auto insurance rates may be calculated based on a specific formula that is different with each company. Factors such as age, car location, driving history, annual miles, coverage options, number of vehicles on policy, amount of claims filed, safety and security equipment available to name a few. Below is some more reasons insurance rates can vary.

Answer 8

You can easily check quotes in internet, for example here: http://autoinsurance.maclenet.com

Every item they asking for - driving record, type of the car, credit score - influence your quotes.

Answer 9

By determining your risk factors.  Male or female.  Over or under 25 years of age.  What car.  What ZIP.  Driving record.  Even credit rating is considered.

As you can imagine, a 17 year old with a Mustang, and speeding tickets, living in downtown Los Angeles will pay more than a 50 year old driving an Oldsmobile in a small town in Kansas with no tickets.