Monterey Park is a beautiful site of relaxation and entertainment. Many different interests can be satisfied on our grounds and we hope, you will enjoy your visit in our own “little” WORLD, be it with us in Auckland, New Zealand, or simply at home in cyber space.
Car Insurance Companies
What Do Car Insurance Companies Look at When Determining Rates?
If you are wondering why your car insurance company costs what it does, you might be wondering what insurance companies look at when determining rates for coverage. Of course, this can vary a lot from one car insurance company to another, but there are a few things that many of them look at. These are some of them.
Age
Believe it or not, a lot of insurance companies look at your age when determining how much to charge you for your insurance. This is because there are statistics out there that show that younger drivers can be more prone to getting into car accidents than older drivers. In time, however, you should see your car insurance rates go down.
Driving Experience
Even if you aren’t a teenager, you can still expect to spend a lot on your Youi insurance for the first few years after first getting your driver’s license. This is because car insurance companies often think that it takes a few years of driving before you are truly a safe and confident driver who knows how to handle various scenarios on the road.
Type of Car
Yes, the type of car that you drive does have a big impact on your car insurance rates. After all, you have to think about the fact that your car insurance company may have to pay for the value of your car if you get into an accident. Because of this, a more valuable car can be a more expensive car to insure.
Additionally, some cars are much faster than others. With sports cars, for example, auto insurance companies may believe that you will be more prone to speed and therefore might be more likely to get into an accident or to have an accident that is serious than a driver with a slower car.
Credit Rating
A lot of people don’t realize it, but a lot of auto insurance companies do look at your credit score when determining how much to charge you for insurance. There are a few different theories about why this is the case, but many believe it’s because insurers may think that someone with a low credit score might be irresponsible and could be more prone to be a risk-taking, reckless driver.
As you can see, there are a few things that insurance companies look at when determining rates that don’t involve the accidents you’ve been in or the tickets that you might have had. By shopping for auto insurance quotes, however, you can help ensure that you are getting the best possible deal, regardless of what the companies look at when determining rates.
