Frequently Asked Questions

What are the 6 factors that affect insurance pricing?

In the insurance industry one set way of providing quotes to customers would never work properly across the board. Insurance factors and pricing are based on individual criteria that every single individual has established for themselves. There are 6 factors that affect the insurance prices that we have to pay.

The primary reason behind cost would start with the type of plan you choose for yourself or for your family. Selecting a higher deductible makes it easier to save money on car insurance but if an accident occurs and you need extensive repairs done to your car you might not be able to afford to make the repairs.

The number two factor that insurance companies take into consideration when providing you a quote is what you intend to drive and have covered by the insurance. A fast sports car may in fact carry a higher risk statistic and cost you more in the long run where a normal car, truck, or station wagon may only be a minimal amount.

The third factor is how often and how far you will be driving each day, which could be the difference between collision and comprehensive insurance. The further you drive combined with the frequency of how often you drive can be used in an equation to determine your risk of accident as a driver. A discount is usually given by insurance companies for drivers who drive under a certain amount of miles per year.

Where you drive would be the fourth factor on insurance pricing. If there is a higher level of vandalism, theft, and accidents your vehicle is more at risk of being damaged and a claim submitted during that process.

One of the most conditional factors that would have an astronomical price affect would be your driving record. If you have a bad driving record you can rest assured that pricing for your the different types of auto insurance will definitely be on the high side.

The final factor that determines how much your insurance will cost is your age, sex, and marital status. As you get older you are least likely to be involved in an auto accident. Anyone under the age of 25 years of age will have a slight higher occurrence factor.

The previous six factors are used by insurance companies to establish a price quote when someone is interested in purchasing auto insurance.