How car insurance rates are calculated for restaurant automobilesMilton Bates June 25, 2019 0 COMMENTS
Different companies will apply different factors to the way they finally arrive at a price for your Car Insurance. Generally speaking though the concept is the same. This involves collecting various bits of information from you and feeding it through a computer system which adds or takes away money depending on the answers you give.
The value put on these answers is decided by the individual Car Insurance Company.
For example, some Car Insurance companies may believe that having a speeding conviction increases your chance of having an accident in the future – therefore they may add money to your price if you have such a conviction.
Similarly, some Car Insurance companies may decide that because you have a lot of No Claims Bonus Years then you are less likely to claim – therefore they may discount your price. All in all there are around 30 different factors that may affect your final premium. Now you can see why you get such a difference in the price of your Car Insurance by going to various companies. Each company will have it’s own view of what they believe should be assigned to each answer you give.
Your auto insurance rates are determined by a number of factors:
-usage, how you are using the vehicle, work, pleasure, business
-how many drivers you have and their ages
-how many vehicles you have
-what kind of coverage limits you want
-what area you live in
-your payment history
-what colour car you drive
-your insurance credit score
-your claims history
-your occupation and how many years you have lived at your current residence
-your daily, weekly, annual mileage
There is a lot of information about you that is used to determine your rates. You are grouped or pooled together with similar drives of the same background that way you are not paying for drivers that are much worse than you.
Similar risks will pay similar rates.
Your usage affects your rates because if you are driving to and from work or school 5 days a week, 15 miles one way you have a higher chance of getting in a accident than someone who only drives 1 mile 1 way 3 days a week or someone who works from home and only drives to get groceries. So business, work, and school usage is higher than pleasure usage.
The area you live in affects your rates due to the fact that one area or town may have a higher incidence of claims than another area. One area may have higher lawsuit pay-outs or higher theft rates than another area. Even if you live in affluent areas your rates may be higher due to the higher value vehicles in your area cost more to fix than in an area with lower value vehicles.
If you have one car and three drivers you will pay more because that car will get used a lot more than if you had only 1 driver and 1 car.
How restaurant business credit scores matter when applying for car insurance
If you have had a poor payment history or your policy has cancelled due to non-payment you will have higher rates when you try to reapply for insurance.
The higher your insurance credit score the better. The insurance credit score is similar to your FICO credit score such that the higher your FICO score the lower your interest rate and the higher your insurance credit score the lower your best car insurance prices.
Your claims history will affect you for a minimum of 3 years. If you have filed a claimed or if you even mentioned a claim to your insurance company it can and most likely will affect