When the question is one of auto insurance, experts would most often suggest that you get as much as you can afford. Car insurance (or auto insurance) rates are derived from a person’s driving history, demographic data, and several other variables.
Consumers of any service are often concerned with the pricing above anything else. In this case, prices determined by numerous metrics. Comparing car insurance requires an insight on the basics of how auto insurance works, and what works best for you.
From young, teenage drivers to highly skilled motorists – auto insurance is something that is necessary for all drivers.
Understanding the Basics – Factors That Can Affect Auto Insurance
During the underwriting process, auto insurance companies go through a set of criteria designed to evaluate an insurance application. Different companies use different guidelines. Most importantly the risk is evaluated on the drivers and their vehicle. Insurance companies apply rates based on risk potential.
Beside risk potential, applicants are categorized based on their credit score and which influences the potential for claims that the insurance company may have to pay.
Your motor vehicle record, including number of accidents the applicant has been in or the number of tickets he or she has received throughout their driving experience affects the rate. Analysis is also done by considering at criminal records that involved vehicles such as driving under the influence etc.
Driving histories are typically dated back three years. However, some companies date driving records back to five years or more. The process of selecting applicants and charges applied based on history varies from company to company.
Car Insurance Rates Based On Driving History
The following is a comprehensive guide with a comparative analysis to assess and evaluate the sort of driving category you fall in and the insurance company that would cost you the least:
1. Driving with A Suspended License:
Some insurance companies weigh this activity more severely than others. Rates can change substantially once the insurance holder is met with a circumstance that changes his or her record.
For example, if a driver is found driving with a suspended license, the average annual increase would go up on average $500.
2. DUI, DWI, or OWI:
Rates are known to increase dramatically for a DUI, DWI, or an OWI. The average price increase is about $600 every six months.
3. Car Insurance Rates After A Collision:
If found at-fault in a collision claim rates can climb upwards of 30% every six months for 3-years. In a not-at-fault collision your rates may remain steady or you may simply lose a claims free discount.
4. Reckless Driving:
If you are ticketed with reckless driving your rates may increase up to 50%. Laws vary within each state, but reckless driving is a serious offense. Most companies would increase their rates by approx. $600 after a violation.
5. Cost Increase After A Hit-And-Run:
A Hit-And-Run constitutes the most substantial effect on your insurance coverage, with an increase of over $100/mo by most providers.
The Effect Of Insurance Discounts
If an applicant has a ‘safer’ record than others, the service provider may offer an auto insurance discount. Anti-theft devices, electronic payments, and payments in full all generally qualify for discounts.
The amount of discount a consumer is being offered varies based on the insurance company. Always make sure you’re looking for an auto insurance provider that appreciates your record.
How We Can Help
Looking for the best auto insurance in Tulsa? At Insuring Oklahoma, we’ve got you covered. Our experts at Insuring Oklahoma can shop your rates and are dedicated to providing you nothing but the very best auto insurance in Tulsa, Oklahoma.
Browse through our website or dial 918-872-7100 today to talk to our auto insurance expert. Our experts can help you choose the right plan for yourself or even work around a custom plan that matches your requirements. Reach us today!