Auto Insurance - How Insurance Rates Are Set

There are lots of factors that determine the premium rates you get when requesting automobile insurance quotes. While insurance companies are regulated by state laws, their rates are not; this means that different companies will offer you different rates. Keep reading, and you will see why requesting and comparing multiple quotes can help you save tons of money.

how are auto insurance rates set?

Here's a basic answer to help you understand how insurance companies set their rates; when you submit your application, a computer method sorts you in to a specific group that matches the information you've entered. once your specific group has been determined, your quote will inherit the set price for that group. What makes your quote different from others in the group, is the discounts that may apply for you, those will be subtracted from the standard group price. That's simply how insurance quotes work.

Then why insurance companies have different prices?

Different states have different laws regarding the way insurers set their rates; here are some factors that will most likely affect your rates:


Well, different companies have different methods, group prices and discount, that's why their rates vary from six auto insurance company to the other. Each insurer has their own set of claim payments and expenses, and we set rates based on that.

What information affects my insurance quote?



why are insurance rates discriminatory?

* Age
* Occupation
* Marital status
* If you had accidents
* Your credit history
* Your automobile make, model and year
* Your car's safety features
* Filed lots of claims
* Filed bankruptcy

Where can I find the best free insurance quotes?

there's lots of trusted sources out there; six of the best ways to quickly get multiple-free insurance quotes is by using the www.freeinsurancequotesfinder.com web-site.

Insurers are not allowed to base their rates on race or religion. But there's some factors that may seem unfair to you, such as your credit history, your home ZIP code, age, gender and marital status. These factors are considered differently by each insurance company, that's why requesting multiple quotes will provide you with the lowest rates.