Applying For Auto Insurance

There are many factors that will determine the cost of your auto insurance policy as well as determine the company that will be willing to provide coverage for you.
 
The following listed factors play a major role in determining the over all cost of your auto insurance premium.

   Your Driving Record
 
Convictions and accidents along with your driving experience play a major role.

Of course a minor conviction/violation will weigh less and may not be surcharged (depending on the insurance company) than a conviction/violation of drunk driving or chargeable accident.

   Where You Live
 
Your place of residence will also play a major role as insurance companies have territorial rating.

Some neighborhoods are nicer than others and the chances of car theft and vandalism vary by territories.

Living in an urban area and a high crime area will effect the cost of your insurance premium.

Geographical area tending to have heavily traffic congestion contribute to the chances of collision and can effect the rates.

   Your Age, Sex and Marital Status
 
A driver who is under the age of eighteen (18) and who has just recently acquired their driving privileges (license) is likely to pay a higher premium than a driver who is over the age of twenty-five (25) such as single male under the age of twenty-five (25) would pay a higher premium than a married woman over forty (40).

Statistics show that men spend more time behind the wheel of a car than women do and tend to drive more aggressively or under the influence of alcohol.

   Your Vehicle(s)
 
Insurance companies maintain records of the frequency and severity of accidents involving all model vehicles.

The vehicle you drive may have high loss experience when involved in accident.

Many vehicles are rated high in theft records or may have a high cost or unavailability of replacement parts.

Therefore, vehicles being more expensive to fix and easily damaged will likely be higher rated.

   The Usage of Your Vehicle(s)
 
Insurance companies have four categories on the use of a vehicle.

     1. Commuting
     2. Business
     3. Pleasure
     4. Farming

The purpose of the use of your vehicle(s) helps determine the rate of your insurance policy.

A vehicle used for pleasure will have a lower premium than a vehicle that is used for business.

Obviously the vehicle being used for business is likely to be on the road more and the chances of being involved in an accident are greater than a vehicle being used for pleasure use.

The rate for using your vehicle to commute back and forth from and to work is determined by the distance driven from your home to the workplace.

You will have higher premium if the vehicle is driven over ten (10) miles each way as if it was only driven nine (09) miles or less each way.

Insurance is required by law and although there are many factors that determine the cost of your policy, these factors can vary among companies.  Companies structure rates to expect to make a profit while yet making their prices competitive with other companies and having sufficient funds to pay for anticipated losses on claims.