Auto insurance doesn’t come cheap and yet most Americans are required by law to have it. When the time comes to purchase or renew an auto insurance policy, there are certain things drivers can do to save money. The first thing a driver must understand about insurance is how insurers underwrite a policy and the second is how you are rated. Having this information can help you save on auto insurance Monterey.
Underwriting is a process in which an insurance company assesses your risk of an accident. They then group you with other applicants with similar risks before deciding whether or not to offer you a policy. If you are accepted, you are given a rating and this determines how much you will pay for insurance. The rating is based on what the insurer believes it will cost their company to assume financial responsibility for you when you are behind the wheel.
Underwriters use information provided on a driver’s application to determine whether or not coverage should be offered. Not only will the driving record be looked at, the company also looks at personal characteristics to project future claims. Age and gender are two of these characteristics that unfortunately cannot be controlled. Geographical location and vehicle usage can be controlled to some extent and these factors play a role in the underwriting process.
Factors that can be controlled include the make and model of the car to be insured, marital status and employment history. As a group, those who are married tend to file fewer auto insurance Monterey claims and the same is true for those who have been employed at the same place for an extended period of time.
Rating also plays a role in what you pay for auto insurance Monterey. Each company uses their own internal rating system. Factors looked at here include a person’s driving record, prior insurance coverage and vehicle use. Claim frequency is the most important factor when a company goes to determine a person’s insurance rating.
Consider all of the above when shopping for auto insurance Monterey . Although certain factors cannot be controlled, if you wish to lower your insurance premium, you can make some changes. Doing so could save you hundreds of dollars a year.
Auto insurance in Monterey is just one of the insurances that are available from Coast Auto Insurance Services, Inc. Home insurance, boat, life and commercial insurances are available as well.
