How Are Auto Insurance Rates Determined?

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What Factors Affect Your Auto Insurance Rates?

In addition to comparing car insurance companies, you may also want to research the factors these companies use to determine auto insurance rates. Find out which variables can help you save money and which will ultimately cost you more.

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The rising cost of auto repairs and medical care have significantly impacted the cost of auto insurance, in recent years.

If an auto insurance company wants to increase its insurance rates, they must submit their request to the state's Insurance Commissioner. As part of their request, they must include enough financial information to justify the rate increase. If our rate analysts are satisfied with the facts provided, then we are obligated by law to approve the request.

In addition to requesting overall rate adjustments, companies may also change the way their rates vary based on a number of factors like claims history, age, address etc.

Auto insurance rates are based on a variety of factors. The amount you pay is made up of a "base rate," plus or minus certain amounts depending on your age, sex, marital status, driving pattern, claims history, geographical area, credit history, and the make, model, and year of your vehicle.

While the weight given to any factor differs from company to company, the following major factors are generally used by all companies: age, gender, marital status, car make and model, claims history, driving patterns, location, and credit history.

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