Are your friend’s auto insurance rates cheaper than yours?

To gain a better perspective, when insurance companies are determining what to charge for auto insurance, they are essentially trying to calculate the cost of claims they will pay in the future. In trying to perfect this science, over the years, insurance companies have found a variety of factors they deem consistent indicators of future claim activities.  Many are aware that age and driving record directly affect auto insurance rates; however, there are other factors used—many that people are unaware of. Territory, location, or area where the vehicle is garaged.

• By analyzing past claims, insurance companies can often find a pattern in the frequency and severity of auto accidents by territory. The contributing factors for this could be numerous. For example, hurricane losses would be higher for vehicles garaged in the coastal areas. Residents of areas that experience high occurrences of theft will find they are charged more for purchasing theft coverage on their auto policy. As a result, where you live and garage your vehicle can factor into how much you are charged for auto insurance.
• Type of vehicle you drive.Insurance companies take into account the vehicle’s crash ratings, cost of parts, safety features, theft data, and more. A great resource for gathering theft data on automobiles is the National Insurance Crime Bureau. At www.nicb.org, you can find the highest ranked stolen vehicles by state.
  

These are just a couple of factors many may not be aware of. Do note, not all insurance companies place the same weight on these factors. In fact, not all companies use the same factors when calculating their rates. This is one of the primary benefits of using an independent agent for your insurance needs.  Independent agents represent several different insurance companies and therefore have the benefit of comparing rates for you to find the best rate for the best coverage.