How Do Auto Insurance Companies Assess My Risk?

There are a number of factors that auto insurance companies will take into account when they are calculating the likelihood that you will be involved in an accident, or that your car will be stolen. There is no specific way that all companies will use to calculate risk as they all have their own criteria, and they will all place different levels of importance on the different factors that they look at. However, there are certain factors that will be used by almost all insurance companies.

• Driving History: Your driving history is one of the most important factors that insurance companies will take into account when they are assessing your risk. If you have been involved in accidents in the past, or you have had moving violations, then you are likely to pay a higher price for your auto insurance in Riverside CA. Typically, insurance companies will only look at the past five years of your driving record, so as long as you are not involved in any further incidents, your premiums should start to fall after this time.

• Demographics: Demographics also have a large role to play in assessing risks. Generally speaking women will pay less for auto insurance then men as they are considered to be at less risk of being involved in an accident. If you are aged between 25 and 65 years then you may pay less for your auto insurance in Riverside CA than people aged younger and older than this. If you are married then this could get you cheaper insurance than someone who is single.

• Occupation: People who work in certain occupations tend to be more likely to be involved in accidents than others, and so if you work in one of these professions then you could find that your insurance premiums are higher. Unfortunately, there is very little that you can do about this without changing careers, but it is worth keeping in mind that a good driving record could reduce the price of your insurance, even if you do work in a profession that is considered to be high risk.

• Location: The place where you live can also affect how much you pay for your auto insurance. If you live in a neighborhood where there are a lot of busy roads, or that has a high crime rate, then you may have to pay more for your insurance. If you live some distance away from where you work and therefore your mileage is above average, then this can also lead to higher insurance as you will be considered to be more at risk of an accident because you spend more time on the road.

Due to the fact that all insurance companies use different criteria to assess risk, it is often possible to find a cheaper deal on your auto insurance in Riverside CA by shopping around with a number of different companies. It is advised that you get quotes from at least three different insurance companies to compare prices, and you may be surprised at how much money you can save.