Auto Insurance Rating Factors

Reader’s Question:

What are auto insurance rate factors you can change on you auto insurance to lower it?

Anna

Portland, OR

In many states insurance carriers allowed to set up their own rates and do so by using certain rating factors or risk factors to determine a driver’s car insurance rate. These factors are essential because statistically they can assist determine those drivers that will be more of a risk for an insurance company and therefore their rates will be higher. The factors are essential for a motorist or policyholder to know so that they are sufficiently informed on what criteria their rates are set.

Some of the factors that most insurance providers use are: age, gender, marital status, geography, driving record, claims history, vehicle type, occupation, education etc.

Rating factors that you can change more easily than others are the type of cars you drive, the limits of your policy and the miles driven each year.