Augusta
VIP Contributor
The insurance company takes into consideration different Things when they want to calculate the premium for different insured. The thing is that every insurer uses a different formula to calculate rates so this brings about different car insurance premium that differs from one insurance company to insurer.
So with this different calculations an insured will find Different premium rate with different companies This is why it is always good to shop first before settling for an insurance company.
So how does insurance company calculate for auto insurance premium
The insurance company will calculate for the value, safety ratings, and theft rates of the vehicle. Expensive cars would be given higher premium as they are expensive to replace or repair.
The insurer will calculate based on the driving record of the insured. A clean driving records gets a low premium.. Any driver with a speeding violations and othev accidents faults will be calculated to pay high premium.
Insurance companies also calculate their premium according to the gender involved. In some states, men pay more for car insurance than women. In others women are made to pay more . but in other locations like California,insurers are restricted from any gender based premium.
Insurance companies also based on auto insurance premium on location. This is there are different insurance regulations and requirements for each state. So . Premium will differ from place to place
So with this different calculations an insured will find Different premium rate with different companies This is why it is always good to shop first before settling for an insurance company.
So how does insurance company calculate for auto insurance premium
The insurance company will calculate for the value, safety ratings, and theft rates of the vehicle. Expensive cars would be given higher premium as they are expensive to replace or repair.
The insurer will calculate based on the driving record of the insured. A clean driving records gets a low premium.. Any driver with a speeding violations and othev accidents faults will be calculated to pay high premium.
Insurance companies also calculate their premium according to the gender involved. In some states, men pay more for car insurance than women. In others women are made to pay more . but in other locations like California,insurers are restricted from any gender based premium.
Insurance companies also based on auto insurance premium on location. This is there are different insurance regulations and requirements for each state. So . Premium will differ from place to place
