Factors such as population density weather road design and maintenance and the crime rate of.

How car insurance rates are determined. Insurance companies use professionals called actuaries who use math and statistics to help determine the financial consequences of the risks associated based on the information you provide. Your rate is determined using a combination of factors or risk characteristics outlined below. One of the first things any car insurance agent will do is contact the DMV to get a copy of your driving record.

Insurance companies rate all cars based on their actual experience of how those cars perform in terms of claims for repairs injuries theft history accident likeliness. How car insurance rates are determined depends on the provider you choose and the insurance laws in your state. The Financial Services Regulatory Authority of Ontario.

Car insurance companies use statistics on car theft and how common accidents are in each area to determine the risk of insuring a car that is parked or garaged in that area. Your insurance rates are also determined in part by the type of car you drive. Thus your postal code has an impact on your rates.

Your geography affects car insurance prices because once again statistical evidence is used by insurance companies to help calculate potential risks. The amount of coverage you decide to purchase is the next thing used to calculate your car insurance rate. Insurance companies are all about managing risk.

The higher up your car rates on this car rating the better your profile looks. Youll be considered more of a risk if youre frequently caught engaging in shall we say spirited. Your Driving Record.

Generally the harder your car is to steal and the less expensive it is to repair the less you pay for insurance. Understanding how your car insurance rates are determined is an important aspect of accomplishing this. The Financial Consumer Agency of Canada.