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Auto Insurance Estimates - What Factors Play a Part?
As a policy holder, it most likely amazes and confuses you as to what insurance companies look into when dealing with auto insurance estimates. Some aspects of it make sense and then there are others that are a mystery.
For example, you might not understand why it matters whether you have your vehicle paid off. To the insurance company, it does. The reason companies look into so many different factors in order to come up with an estimate is because you basically are asking them to take a risk on your behalf and you will pay them for it. This also means they have to look into all of your risk factors.
The first and most obvious feature at which a company will look when coming up with auto insurance estimates is your driving record. If you have a history of poor driving decisions, such as traffic violations and accidents, this is a greater risk than someone who has never had any of these things.
From the insurance standpoint, it is more likely they will have to pay money on you because you have a history. For this, they typically will charge a higher policy estimate. Beyond this, they look into safety aspects that will cost them more money. An example of this is if you do not wear your seat belt.
Other safety factors that the insurance companies take into account when figuring out auto insurance estimates have to deal with your vehicle. If you are driving a vehicle that has air bags or anti-lock brakes, or both, you are going to be safer in the vehicle. This will help lower your estimate.
They also take into consideration where you live. This is because certain neighborhoods have higher rates of vandalism and theft. If you are going to have your vehicle in this area more often, you are increasing your chances of having this happen to your vehicle, which results in the insurance company paying out.
Another aspect that goes into auto insurance estimates is the make of your vehicle as well as the color. The color is important because police tend to pull over people driving certain colored vehicles.
The model also plays into effect because it is likely that someone driving a red sports car is going to go faster than someone driving a tan minivan. Knowing what all insurance companies look into can help you reduce your estimate.
Be sure to visit the author's website to get free information about International Auto Insurance.