What are auto insurance rates based on and why do some companies cost more than others?

Question

What are auto insurance rates based on and why do some companies cost more than others?

Answer 1

Most companies have actuaries that do rating.  Based on location, type of car, your coverages, age, driving experience, driving record, etc.  I recently became insurance consultant so if you have any more questions or want a quote, email me.

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Answer 2

To know more about

insurance and registration  

Please feel free to visit      http://www.autoinsurancepros.net

Answer 3

There are lots of different factors that insurance companies use to determine your auto insurance rates. Some companies are more picky and charge higher rates than other companies.  It just depends on the company.  Some companies only want drivers with good driving records and will charge outrageous rates for high risk drivers.  Some companies don't mind having drivers with a poor driving record and won't charge as high of rates.

That's why it is so important that you compare rates from multiple insurance companies before you decide which one to go with.  If you don't you could end up paying too much.

Answer 4

There's many criterias insurance companies factors in for price. Here are a few (in no particular order)...

- Driving record

- Age

- Years licensed

- Vehicle

- Zip code

Some companies will specialize in certain risks. For example, Company A specializes in younger drivers while Company B specializes in older drivers, and the prices reflect that. They usually file with the state's Department of Insurance, and the insurance company will state their case to them, and the DOI will determine whether the pricing is fair for other carriers to compete with.

Answer 5

Make use of google to collect some related links or you could try to use answer engines like yahoo answer or answer.com to get some related answers.nonetheless,If you like some direct resource,here is a good resource from my own experience.http://insurance.online-frees.info/insur...

Answer 6

Rx Queen, There are lots of sites where you can get an online quote. http://www.multipleautoinsurancequotes.c... It only takes 5 minutes to do.

Answer 7

They are based on

Age

s*x

Race

Type of Vehicle (make, model, year)

Prices vary because different companies offer different forms of coverage and still try to be competitive in the market and make a profit