by Guest » Wed Feb 03, 2010 11:23 pm
Hi, I'm new to the forum.
Generally, what is the main criteria companies use to quote car insurance rates.
I am the primary driver of a one car household that I do use for business (I am self-employed) I have a credit score of 770 and one speeding ticket. I also have an 18 yr old honor student (male) who uses the car roughly 6-8 hrs. per week.
Once he got his license, my rate went up 1.5 times what I was paying when it was just myself on the policy. So I asked other familes in my social circle and found that I am paying more on one car than everyone else pays that has 3-4 cars with 2-3 teenage drivers.
Why is that.
Generally, what is the main criteria companies use to quote car insurance rates.
I am the primary driver of a one car household that I do use for business (I am self-employed) I have a credit score of 770 and one speeding ticket. I also have an 18 yr old honor student (male) who uses the car roughly 6-8 hrs. per week.
Once he got his license, my rate went up 1.5 times what I was paying when it was just myself on the policy. So I asked other familes in my social circle and found that I am paying more on one car than everyone else pays that has 3-4 cars with 2-3 teenage drivers.
Why is that.
Posted: Thu Feb 04, 2010 12:31 pm Post Subject: Car Insurance rates
Apart from the state laws, the factors that determine the rates are the following:
1. Age and Gender: Statistic shows that there are disproportionate number of teenagers involved in the accident. People of 25 - 49 age group are involved in fewer accidents and people 50-64 are in fewest. However, by 75 they are most commonly into accidents. Again, women are in few accidents than men.
2. Marital status: Married men are into lesser accidents than the unmarried ones.
3. Driving record: If you are involved even in a single accident, insurance companies believe that there is a likelihood that you'll be further accidents and this would automatically increase the rates.
4. Credit history: This is a very influential factor and it greatly affects your rates. If you have poor credit history, your insurance rates would definitely go up.
Posted: Fri Feb 05, 2010 12:43 am Post Subject:
Why is that.
You need to start shopping...get quotes from several agents/carriers make sure you are comparing apples to apples (same limits/coverages and deductibles)...somethins' fishy here...Do you have any other policys with the company you have your car with? I'm wondering if your vehicle is rated for business use, and you have an 18yr old male listed, if maybe that isn't the big difference? I'd still start shopping.Add your comment