Rating Factors Insurance Companies Consider
Rating Factors Insurance Companies Consider Year, Make, and Model of Vehicle Rates for vehicles are based on statistics compiled by the insurance industry. These statistics include information such as the frequency of theft and accident claims, the cost to repair a vehicle, the size and type of vehicle, and their safety performance and history. If you have the serial or vehicle identification number (VIN) for your vehicle, the quote you receive will be more accurate than one based solely on year, make, and model. The VIN can indicate features such as the engine size, presence of anti-lock brakes, and whether your vehicle has four-wheel drive. Vehicle Usage Rates may vary based on whether your vehicle is used only for pleasure, used to drive back and forth to work, or used in the course of your business. Each type of usage is defined in the policy and the terms used to describe usage may vary from company to company. Usage may also include the number of miles of your daily commute or an estimate of your annual mileage. Because terminology differs between companies, it is better to describe the use of our vehicle and allow the person providing your quote to decide which term best fits your description. Names of All Owners and Operators of the Vehicle(s) in Your Household Some companies will also need the name of all members of your household who are old enough to drive. The price of your policy may be based on information on all licensed drivers as well as all potential drivers. Alaska Statute 28.20.440(l) allows you the option of excluding a driver in your household from coverage. Your insurance company may request that you do this if a driver on your policy has proven to be a greater risk than the other covered drivers. You may have a young driver away at school without a vehicle and may exclude them from coverage in an effort to lower the cost of your policy. Before excluding a driver from your policy, you may want to determine if there are less restrictive ways of removing someone from your policy. Physical Address Rates vary based on where you drive. A resident of a small, remote community may be less likely to be involved in an accident than a resident of a large, urban community where there are more miles of road and many more vehicles on the road. Age, Sex, and Marital Status Insurance rates are based on statistics that each company has compiled. For example, if statistics indicate that single men under the age of 25 have been found at fault in more accidents, the company will charge a higher rate for customers who fall in that category, because as a group, they will increase the need for funds to cover the expense of claims.