Your changes will require approval by an administrator before they are published.
The article has been updated successfully but requires approval before it is published.What affects the cost of car insurance?
|
Enter your Zip Code below to get a Free Quote. We suggest getting quotes from multiple companies to ensure you get the best rate. There is no obligation to purchase. 
|
Car insurance costs fluctuate like the stock market, and many customers feel that if they were to part the proverbial curtain they may in fact find the Wizard of Oz pulling strings and running the insurance machine. The real wizards at car insurance companies are actuarians. These mathematicians develop complex formulas to predict the risk an individual would present to the insurance company in the case of an accident.
Auto insurance companies reward customers who are a low risk with lower premiums. Because high-risk customers pose a higher potential for filing an insurance claim, they pay higher premiums.
Evaluating the risk of an accident is the full time job of actuarians, and they study several factors to determine if a driver is a possible risk. Some of these factors include:
- Vehicle Make and Model
- Vehicle Engine Type
- Driver Age
- Gender
- Driving History
- Credit History
- Marital Status
- Education Status
Post Comment for "What affects the cost of car insurance?"
To post a comment for this article, simply complete the form below. Fields marked with an asterisk are required.
Visitor Comments