Handyman Insurance – Factors Determining the Cost of Business Auto Insurance
Many individuals have no idea what the price tag will be when they begin to shop around for car insurance policies, and sometimes they are pleasantly surprised with the amount asked by insurers, but then others find premiums shocking. While there is no set price for every driver, what a person will pay to cover themselves and their automobile will vary from person to person because insurers have a formula that they use to calculate the rates they will charge for coverage based on applicants and the vehicles to be insured; since everybody’s situation is unique, the cost of a policy can vary substantially with each insurer.
When determining how much auto insurance costs, it is vital to understand what an insurer analyzes to determine premiums. Probably the most significant factor used to calculate a premium is a driver’s record; this is a substantial indication of a motorist’s driving habits and their likelihood to be involved in a loss, ultimately costing the carrier monetarily. Therefore, if a driver has a history of tickets and accidents, they will probably pay more in premiums than those who do not because they are viewed as a higher risk to insure due to their previous incidents.
Other Factors that Affect the Cost of Insurance
Aside from a driver’s record, many additional factors will reflect what a person will pay for their auto insurance. For instance, age plays a big part because the ages of motorists are broken down into groups, and each group has a certain level of risk associated with them. Drivers under age 25 are considered to be “younger motorists” and will likely pay more for coverage than mature drivers, and this is especially true for teenagers; statistics show that motorists between the ages of 16 and 19 are four times more likely to be involved in a traffic accident than older drivers and 16 year olds are three times more at risk than 18 and 19-year-olds.