It then reports that information to the insurance company to determine rates.

How are auto insurance rates determined. In fact auto insurance companies rely on sound statistical data - compiled and tested over decades - to determine the fees it charges its individual customers. The key factors include. People often wonder how auto insurance rates are determined as they differ from driver to driver and from provider to provider.

How car insurance rates are determined depends on the provider you choose and the insurance laws in your state. A consumers driving record includes accidents and traffic violations for the preceding three to five. Understanding Auto Insurance Rates Auto insurance rates can vary greatly from person to person and vehicle to vehicle.

Thats why the majority of car insurance companies use a credit-based insurance score to determine your rate. Your insurance costs are determined in part by the claims costs associated with the year make and model of the vehicle you drive. The fact is there are a variety of factors that affect what you pay.

Your location demographics how you drive and insurance history Your level of coverage ie. Insurers assess many factors including your driving record when calculating your premium. Compare rates to find the company that is best suited to your needs and offers the best rate for your situation.

For example metro cities with higher rates of accidents theft and vandalism have comparatively higher rates than non-metro and rural areas. You may feel that a car insurance company sets its rates by throwing darts at a dartboard or consulting a Ouija board but thats not the case. Youll be considered more of a risk if youre frequently caught engaging in shall we say.

Your Driving Record. In this plan drivers agree to install a small device in their vehicles which monitors mileage and driving patterns. In reality there are a number of factors that determine your auto insurance premiums.