How are auto insurance rates determined?
In general, companies base their rates on their estimate of the likelihood that you will be involved in an accident. Statistics show that younger drivers are more likely to be involved in accidents than older, more experienced drivers. Therefore, rates for younger drivers will usually be more expensive. If you have collision and comprehensive coverage on your policy, the kind of car you drive will also affect your rates. Expensive cars and cars built for speed are more expensive to insure. Likewise, cars with safety or anti-theft features are usually less expensive to insure. Each insurance company has its own method for determining your risk. It is unlikely that any two companies will calculate your risk to be the same or offer you an identical rate. Some companies may decide that you´re too great a risk and refuse to sell you a policy. If that happens, keep shopping. Since companies calculate risk differently, you may be able to find another company willing to insure you. Rates can v
