The 9 Factors That Are Used to Rate Your Auto Insurance!

By
Services for Real Estate Pros with The Larsen Protection Team

The 9 Factors That Are Used to Rate Your Auto Insurance!

These 9 factors are used by ALL insurance companies to rate your auto insurance but some weigh each factor differently! Some may use credit as they heavier determination factor, some may use age, some claims and yet some your zip code! And even us insurance agents couldn't tell you which does which, as some companies have 72 "tiers" in their algorithm!

You plug in a date-of-birth it goes into one algorithm, # of claims another, credit another...it keeps going when all factors are submitted. Which is why you should shop your auto insurance every 3 years or so - your factors are changing!!!

Zip Code - where you live is one factor.

Home Owner or renter? - this is another facotr that matters

Credit - how is your credit score? They actually don't pull your credit but do get your score for a factor.

MVR - what shows up on your motor vehicle report? Tickets? Accidents?

Driver's in Household - who else is licensed and drives in your home? A child? A relative? A room renter?

Claims - how many windshield cliams have you put in the last 5 years? Other claims, like towing or accidents?

Age - what is your age? Younger drivers (under 25) pay the most for insurance.

Kind of vehicle you drive - own a top-of-the-line mercedes? You'll pay more than the Honda Civic driver. It costs more to      repair that vehicle and it probably has a higher than normal theft occurrance.

How your vehicle is used - Most realtors would (or should buy maybe not you :) ) be rated as business use, since you drive a lot showing houses, going on listing, driving to the office. The lowest rating is pleasure use, then back-and-forth to work (5 miles or less 1 way) and then business use.

I hope this post is informative to you and helps you understand your own auto insurance.

Authored by Tom Larsen, licensed insurance broker

Posted by

Tom Larsen,

Buffalo insurance expert

You'll Switch for the savings, stay for the service!

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