The first thing to understand when it comes to auto insurance companies is that they work almost totally on the basis of risk assessment.
What this means is that an auto insurer will always examine the person applying for a policy, not only personally but also as part of a risk group.
For example, drivers 16 to 24 years of age are considered a high risk group.
Unfortunately, for drivers within that group who consider themselves to be very safe, they're often times lumped into this risk group in what seems to be an indiscriminate manner.
However, in terms of statistics and actuarial tables, auto insurance companies are quite correct to assign that particular group of drivers a higher risk rating, meaning higher policy cost.
Fortunately, there are a number of things that such drivers can do when it comes to dealing with insurance and risk as assessed by an automobile insurer.
Almost every driver can help himself, it must be said, by being a safe driver and by driving less.
Vehicles that are driven less than 10,000 miles a year often receive lower rates than those driven 12,000 miles a year or more, for example.
This is all part of a risk assessment equation as looked at by the typical auto insurer, by the way.
Think about it in terms of being out on the roads and active in driving.
The more the vehicle is driven the greater the likelihood that an accident or some other issue could arise.
As well, the less experienced a driver is the greater the chances of some sort of accident or issue.
This issue of just who is a safe driver and who isn't is something that insurance companies spend a great deal of time and money trying to quantify.
For sure, there are individual drivers within any age group that are either more safe or less safe in terms of driving skill.
And there are discounts available within any age group for the safe ones, which is another facet that insurers pay attention to.
No insurance company could last for long, to be honest, if it didn't constantly look at risk in all of its permutations.
For somebody who's just been issued a speeding ticket, with points assigned, the chances are greater that an insurance policy rate will be adjusted upwards by the insurer.
That's because the driver statistically presents a greater risk, which is evidenced by the speeding ticket.
When it comes to auto insurance companies, they're generally all about risk assessment.
Understanding this can help to lessen the surprise when an insurance policy quote comes back that might seem a bit out of line with one's driving history.
That's because insurers are playing with statistics and basing a risk assessment off of them.
Knowing this, at least, might help to lessen that upset.
What this means is that an auto insurer will always examine the person applying for a policy, not only personally but also as part of a risk group.
For example, drivers 16 to 24 years of age are considered a high risk group.
Unfortunately, for drivers within that group who consider themselves to be very safe, they're often times lumped into this risk group in what seems to be an indiscriminate manner.
However, in terms of statistics and actuarial tables, auto insurance companies are quite correct to assign that particular group of drivers a higher risk rating, meaning higher policy cost.
Fortunately, there are a number of things that such drivers can do when it comes to dealing with insurance and risk as assessed by an automobile insurer.
Almost every driver can help himself, it must be said, by being a safe driver and by driving less.
Vehicles that are driven less than 10,000 miles a year often receive lower rates than those driven 12,000 miles a year or more, for example.
This is all part of a risk assessment equation as looked at by the typical auto insurer, by the way.
Think about it in terms of being out on the roads and active in driving.
The more the vehicle is driven the greater the likelihood that an accident or some other issue could arise.
As well, the less experienced a driver is the greater the chances of some sort of accident or issue.
This issue of just who is a safe driver and who isn't is something that insurance companies spend a great deal of time and money trying to quantify.
For sure, there are individual drivers within any age group that are either more safe or less safe in terms of driving skill.
And there are discounts available within any age group for the safe ones, which is another facet that insurers pay attention to.
No insurance company could last for long, to be honest, if it didn't constantly look at risk in all of its permutations.
For somebody who's just been issued a speeding ticket, with points assigned, the chances are greater that an insurance policy rate will be adjusted upwards by the insurer.
That's because the driver statistically presents a greater risk, which is evidenced by the speeding ticket.
When it comes to auto insurance companies, they're generally all about risk assessment.
Understanding this can help to lessen the surprise when an insurance policy quote comes back that might seem a bit out of line with one's driving history.
That's because insurers are playing with statistics and basing a risk assessment off of them.
Knowing this, at least, might help to lessen that upset.
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