Automotive Information

We Are A Premium Resource For Information
About Cars, Trucks and Automobiles...

Do It Yourself Wind or Solar Power:

Interesting Automotive Facts:
Mercury is an automobile brand name of the Ford Motor Company founded in 1939 to market semi-luxury cars slotted between entry-level Ford and luxury Lincoln models. To this day most Mercury models are based on Ford brand platforms. Mercury was its own division at Ford until 1959 when it was combined with Lincoln and the ill-fated Edsel into the Mercury-Edsel-Lincoln Division; with the demise of Edsel, it has been in the Lincoln-Mercury Division ever since.

In This Article:
Auto Insurance rates are a complicated business. Have you ever wondered who sets your auto insurance rates and how the rates are actually derived? This article will introduce you to some of the factors that will come under observation in your auto insurance pricing.

Top: Automotive Information | Directory: Auto Towing Articles Index

Who Sets Auto Insurance Rates?

By: Sher

Auto Insurance rates are a complicated business. Have you ever wondered who sets your insurance rates and how the rates are actually derived?

Many factors determine how much you will pay. Most of these are common sense and you probably already know but let's go over them just in case. The very first thing that occurs is that the insurance company determines all its costs for the previous year. This includes all claims, the cost of operations, and what ever costs they incur.

They then take those costs and divide them among all the drivers insured with them.

This sets a base line for them but it doesn't mean that's what you will pay. Your driving record plays a major role in how much your premiums will be and whether you earn a discount. The better your driving record the lower your total cost to insure your is going to be.

Your driving record includes accidents and speeding tickets. If you haven't insured a vehicle for a few years they will also penalize you.

This sounds crazy, but it's because they have no way of following up on your driving habits, so they consider you a bad risk.

What coverage you purchase will be reflected on your premiums. Deductibles are a good way to save money. Check with your insurance company and find out what effect raising and lowering your deductibles does to your policy. Remember to never take a deductible that is more than you are willing or able to pay in the event of a claim.

Your insurance company will not divvy up their share until you do.

Age is also a determining factor. Studies have shown that younger drivers are involved in more accidents then older drivers. Some of this is due to their lack of experience. Most insurance companies charge you more until you reach the age of 25. Although some will offer some discounting for every year you drive accident free and without driving infractions.

The type of vehicle you drive and how far you drive affect your rates. That fabulous sports car you've been eying could cost you a bundle. You should check rates on any vehicle before you purchase to make sure you are willing to pay the rates. Some cars get better discounts than others because they more safety devices such as anti theft immobilizers. Some cars also rate list because thieves don't like them and so they don't steel them.

Your insurance company also charges you more if you drive lots. The less you drive the cheaper your premiums will be. Most insurance companies use an average of 10,000 miles in a year. If you exceed this you can expect your premiums to go up.

Where you live also affects your rates. Big city drivers will pay a lot more than some one lives in a rural area or small village.

That's because cities have more thefts, more accidents, and more trouble over all.

Follow this information to help save on premiums. Don't forget to shop on line. Rates can vary dramatically from one company to another. With a few clicks of the mouse you can have several quotes and get low cost insurance.

About The Author:
Sher from has been serving customers for over 20 years as a freelance writer and has been offering information and advice to the consumer. To find out how to save on your auto insurance Please visit us at The Auto Center: http://www.all-auto-center

Other Auto Towing Articles

BIG DISCOUNTS plus FREE Shipping on orders $50 or more at Auto Parts Warehouse

In The News...

DIY Solar or Wind Energy

All Content on this website, unless otherwise stated is:
Copyright © 2006-2009, Automotive Webmasters

More Automobile Insurance Rate Information
Automotive Webmasters Sitemap

See also: Article Marketing Blog