What are the 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.
Does SR22 Insurance Cover Car Damage due to an Accident?
Reader’s Question:
I was driving my sister’s car that has no insurance and someone hit the car that I was driving, will my SR22 cover the damage?
Jim
Chicago, IL
I would suggest you verify that any car you drive is insured. Your sister’s car is required to insure it. Your SR22 policy would be secondary to that car insurance. You may still get in trouble for driving that car if there is no car insurance on it.
If you borrow a car from a your sister and got involved in an accident in that car, your sister’s car insurance would kick in first. However if, for instance, the accident was your fault and the damage to the other driver’s property exceeded the liability limits on your sister’s car insurance policy, your SR22 insurance policy would cover the excess (up to policy limits).
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