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When it comes to understanding auto insurance rates, many drivers may believe that the only matter of importance is how clean their driving record is. Although a driver’s accident record and any history of traffic violations certainly are extremely important factors that insurers use when calculating auto insurance rates, they’re far from the only factors. Even a driver with a spotless record may have higher insurance rates than another driver with one or two speeding tickets on his or her record, based on numerous other risk factors.
For example, even if someone has a perfect driving record, driving a certain type of car might result in higher rates because statistics may show that type of car typically is involved in more accidents than the average vehicle. A driver with a perfect record behind the wheel of a high-powered muscle car is seen as a higher risk than the same driver behind the wheel of a family sedan, because of the muscle car’s higher accident rate.
Beyond the driving record, there are numerous other factors about the driver that can impact insurance rates, negatively or positively. From an insurer’s perspective, anything that has a negative or positive correlation to accident risk can be considered when calculating rates. For instance, living in an area where the crime rate is higher means the car is more likely to be vandalized or stolen, which increases rates. A driver’s commute to and from work every day can have an impact because the longer the commute, the higher the accident risk.
The accompanying guide breaks down some of the most common factors auto insurance providers take into consideration when determining a driver’s auto insurance rates. Take a moment to look it over and learn why your driving record doesn’t tell the whole story behind your rates.