To get a full perspective, when insurance companies are deciding what to charge for car insurance, they are basically trying to estimate the cost of claims the insurance company will pay down the road. In trying to perfect this system, over the years insurance companies have found an array of factors that can be used as accurate indicators of future claim activities. Many are aware that the driver's age and driving record directly influence car insurance rates; however, there are many other factors that can be used also. This article will examine a couple of factors that some people are unaware of.
One determinant, for example, is the area where the automobile is parked. By analyzing previous claims, insurance companies can often identify a pattern in the regularity and severity of car accidents by region. The contributing factors for this could be abundant. For instance, hurricane claims would be greater for vehicles garaged on the coast. People in areas that experience high incidences of theft will notice they are charged more for obtaining theft coverage on their car policy. Therefore, where you reside and park your auto(s) can contribute to how much you are charged for car insurance.
The model of car you drive can play a major part in your car insurance rates also. Insurance companies take into account the vehicle's crash ratings, expense of parts, safety features, theft statistics, and more. An excellent resource for accumulating theft data on cars is the National Insurance Crime Bureau. On their site at www.nicb.org, you can find the highest ranked stolen cars by state.
These are just a few factors many aren't aware that insurance companies use. Do note, not all insurance companies place the same importance on all of these criteria. In fact, not all insurance companies use the exact criteria when generating their rates. This is one of the primary advantages of using an independent agent for your insurance needs. Independent agents represent several different insurance companies and therefore have the benefit of comparing rates for you to find the best rate for the best coverage.
Learn more about Colorado Auto Insurance with The Insurance Advisors today!