Quotes Although a quote for car insurance may not tell you exactly how much you will pay for coverage, it can give you a rough idea of how much a provider charges.
Underwriting, the process by which a provider evaluates an applicant’s risk and the likelihood that they will file claims, is traditionally used by insurance companies to determine premiums.
For instance, a driver who has traffic tickets and moving violations on their record is considered to be at a greater risk than a driver with a clean record, which typically results in a higher premium.
A policy’s premiums can change over time based on changes in the risk level. The following are common grading factors for applicants:
Occasionally, you can lower your premium by lowering your risk to the insurer. For instance, if you rent an apartment in a neighborhood where auto theft is common, you might be able to get a better rate by moving to a safer area.
If you live in an area prone to severe weather, such as floods, hailstorms, hurricanes, and tornadoes, your location may also increase your risk.
