California Insurance Rates are Affected By Dozens of Factors
You'd be surprised what can affect your insurance premium. It matters how old you are, where you drive on a regular basis, even the make of the automobile that you drive matters. Auto insurance rates are different for everyone depending on a lot of different factors. In general, policyholders are put into different “risk pools” based on statistics for specific populations. A policyholder’s risk factor is determined by all sorts of data, including their gender, driving experience, stated reasons for driving the specified vehicle and more.
What are some major factors in determining an auto insurance rate in California?
- Vehicle Classification;
- Age;
- Marital status;
- Mileage driven per year;
- Previous accidents and claims;
- Driving record;
- Credit score; and
- Zip code.
A lot of details determine a vehicle’s risk classification. It is one of the most important factors in determining an auto insurance premium. A vehicle is classified based on its performance capability and its retail cost. The higher the performance capability, the higher the risk factor because better performing vehicles are capable of going faster and more aggressive maneuverings than lower performing vehicles. Thus, higher performing vehicles are capable of causing more significant accidents and damage to other vehicles. A car that has a high market value costs insurers more to replace, so that also increase insurance premiums. Vehicle risk classification is also determined by statistics measuring the number of thefts, accidents and repairs per year for each car.
Some policies are determined based on the average distance that the car will be used on a normal day. The premium may also be affected by the annual mileage put on a vehicle and for what purpose. Usually, the mileage is provided by the insured person, but some insurance providers request this information before determining a policyholder’s risk.
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