How are auto insurance quotes made?
When it comes to getting a quote for your insurance policy a lot of drivers tend to get frustrated. They don’t know what to look for, how insurance companies come up with the quotes as well as how and if they can lower them proactively. First off I’d suggest getting progressive insurance quotes before moving on to other providers and insurance companies as progressive will take care of your insurance needs.
How are the quotes calculated by insurance companies?
The process of creating that final quote is not a simple one. First step in this is to get as many information about (potential) client as possible with the usage of various questioners and questions. Insurance companies also take a look at your driving history and previous claims. Normally the insurance companies will check your driving history within the last 5 years, but some companies only take a look at the last 3 years. Also one more company specific factor can be your current credit score as some companies use this as well to come up with your total quote.
After that all the date gathered in this step one is analyzed and structured into premade risk categories in step two. Risk categories and their value are very individual for each insurance company as not all insurance companies have the same formula. If they did, the prices would be the same in all of them. Sure, there are basic risk factors as for example your car can fall into one of 50 different risk categories created by insurance companies, but they won’t be valued exactly the same.
Finally after all the info has been gathered and all the risk factors have been added to the equation (there are also bonus points you can earn to counter the risk factors), the potential client will get the auto insurance quotes! Most affordable ones are progressive insurance quotes!