Why and how are policies priced for different drivers?
Drivers are grouped according to the level of risk each one poses–i.e., the amount of loss incurred by insurers within various categories of policy holders. For various reasons, drivers are categorized by: • Sex–Men have more accidents on the road than women. • Age–Drivers under 25 (and, for some insurers, under 30) are considered at higher risk of having an accident. • Marital Status–Married drivers tend to have fewer accidents than single drivers. • Personal Driving Record–Years of driving experience, accidents, speeding tickets and drunk-driving offenses are all factors in determining how much of a risk you pose as a motorist. • How You Use Your Vehicle–If you commute by car during rush hours, you’re at greater risk of having an accident than if you only drive for errands and recreation on the weekends. Drivers who use their own vehicles for business also are considered to be at greater risk. • Type of Vehicle–The value, size, weight, age of your vehicle–even the cost of rep
