Have you ever wondered how the auto insurance companies determine the rate of your premiums? It is common to find that different cars have different premium rates. It is also common to find that similar cars can have different premiums. So what makes this possible? There are a few things that the auto insurance companies in the Commonwealth of Pennsylvania look out for.
When you want to get insurance, you will be required to take some legal documents and your car to the auto insurance company. From there, your car will be put in a group according to its characteristics. It is these groups that determine your premiums. The car model is one of the factors that will be considered in the grouping of your car. Expensive car models will get higher premiums than the less expensive car models. This is because if they were to be involved in an accident, it would take much money to repair the expensive model than the other model.
The speed per hour of the car is also considered. Cars that have a higher speed limit will be more expensive than the cars that have a lower limit. This is obviously due to the fact that more speed is equated to a higher risk of causing an accident and therefore more money will be used.
Age of the driver is also considered. Younger drivers will get a higher rate than older drivers. This is attributed to the fact that young drivers are not experienced on the roads. They also like speed. Too old drivers will also get high premiums. This is because they tend to be too slow to respond quickly to danger and they also tend to be forgetful. They forget road safety rules and are therefore are more prone to accidents.
These are just some of the common things that auto insurance in PA use to determine premiums. However, there are very many other things that they look at. You should also know that they will continue keeping an eye on their clients even after they have given a rate. If the client, for example, gets into too many accidents, they will increase the premium rates.
There are several ways of reducing your premium rates after you are given a quote. For example, young drivers with good safety options in the car will get discounts. Also ensure that you have good road manners in order to avoid increase in premiums and even cancellation of the contract.
Disclaimer: I outsourced this article to a freelancer…I had to laugh when I actually read it.