• Skip to main content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

Archives for March 10, 2013

About Car Insurance Classifications

March 10, 2013 by Stephen Catalano 2 Comments

car accident

Besides home insurance, car insurance is another expense that most consumers face each year. But unlike home insurance which is based largely on your personal address, auto insurance is determined by a number of factors, including what classifications are applied to you. Thus, your insurance costs may be based mostly on factors you have no control over or what insurers use to rate and underwrite consumers.

Lets take a look at car insurance classifications and how you can find the coverage that is right for you.

Insurance Verbiage

Please know that the language auto insurers use may be slightly different, which can make it difficult to compare policy estimates. Insurers seek to classify consumers to determine risk and for underwriting purposes.

Under personal auto insurance, you may hear of preferred class and non-preferred class or standard and non-standard classifications. Beyond these classifications there are tiers that are based on a number of personal factors, what we will examine next.

Rate Classifications

Auto insurers look at ways to further differentiate drivers. There are some restrictions on how insurers can do this with various states limiting such determinations. For instance, insurers may not discriminate against certain drivers based solely on moral character, a past criminal record or a physical disability. Your religion, creed, gender, ancestry, marital status and job occupation usually will not keep you from obtaining insurance.

Car insurance companies can set rates based on your age, gender and marital status. For instance, if you are 19-year-old single male, you will typically pay more for insurance than a similar aged female. Moreover, your rates will be higher than a driver who is married and in his or her 30s.

Where you live is an important factor in determining your insurance rates. Generally, you will pay more for insurance if you live in the city than in the country. Further, your insurance rates may be determined based on your zip code or even your neighborhood.

Vehicle Choice

Another classification for insurers is your choice of vehicle. Insurers have a very good idea what your car will cost them if repairs are needed. Indeed, the Insurance Institute for Highway Safety rates new vehicles those models that score higher in crash testing can incur a lower insurance rate than those that score lower. If your car is rated a top safety pick by the IIHS, expect to receive favorable insurance coverage.

Other factors insurers use are based on your cars engine size and performance, its overall value, the availably of replacement parts and its group or body style. For instance, plan to pay more for insurance if you buy a luxury car or a sporty coupe than you would for a standard sedan with a four cylinder engine.

Usage and Prior Coverage

How often you drive will have a huge bearing on your insurance costs. The more often you drive, the higher your coverage. You may need to present your vehicle to an insurance agent to review its condition as well as the miles on the odometer.

Insurers will also look at your prior coverage. Cancellation for nonpayment of premiums and your claim history can work against you. That information is readily shared between insurers.

Insurance Underwriting

The safest drivers can expect to receive best rates, individuals with clean driving records for the past three to five years. Nonstandard underwriting is for higher risk drivers including those under age 25 and drivers with multiple tickets, driving infractions or a poor payment premium history. Insurance approval for such drivers is more difficult to obtain and can be more costly too.

If you are not sure what you stand with your insurance company, your agent can help. Although the division points between classifications are not uniform across insurers, you can get a very good idea where you stand by understanding what risk factors apply to you.

References

State of Wisconsin: Consumers Guide to Auto Insurance http://oci.wi.gov/pub_list/pi-057.pdf

Forbes: How Does Your Car Insurance Company Classify Your Ride? http://www.forbes.com/sites/moneywisewomen/2012/01/31/how-does-your-car-insurance-company-classify-your-ride/

Filed Under: Ownership Experience Tagged With: automotive, car insurance, FINANCES, insurance, INSURER, preferred insurance, risk

Primary Sidebar

Recent Posts

  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis
  • Peugeot May Not Return to the U.S. Market After All
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival

Recent Comments

  • Buying Guide: 2020 Kia Sedona — Auto Trends Magazine on Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • Highlights of the 2020 Kia Sedona — Auto Trends Magazine on Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • Minivan Surprise: 2016 Kia Sedona SXL — Auto Trends Magazine on Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • Compact Crossover Extraordinaire: Mazda CX-5 — Auto Trends Magazine on The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • Compact Crossover Extraordinaire: Mazda CX-5 — Auto Trends Magazine on Compact, Luxury SUV: 2019 Volvo XC40

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008

Categories

  • Auto Parts
  • Auto Shows
  • Automotive Career
  • Automotive News
  • Book Reviews
  • Car Tips
  • Classics & Discontinued Models
  • Commentary
  • Commercial Vehicles
  • Concept Vehicles
  • Dealers
  • Engineering & Technology
  • Fleet
  • Fun News
  • Maintenance & Repairs
  • Motorsport
  • New Car Reviews
  • New Models
  • Ownership Experience
  • Product Reviews
  • Special
  • Specifications
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

New!
Check out our Jobs Board!

via GIPHY

Subscribe to Auto Trends

Subscribe in a reader

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

The Carolinian (new car reviews)
NAPA Know How Blog
On the Road Again

Pages

  • About
  • Authors List
  • Automotive Brochures
  • Contact
  • Industry Jobs
  • Write
    • Style Guide

Categories

Recent Posts

  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis
  • Peugeot May Not Return to the U.S. Market After All
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • GM Launches BrightDrop, Its Commercial EV Brand
  • The Refreshed and Handsome
    Lexus IS 350 F Sport
  • What We Know About the All-New 2021 Jeep Grand Cherokee L
  • The All-New and Formidable 2021 Nissan Rogue Crossover
  • Fuel-Efficiency and AWD Champion: 2021 Toyota RAV4 Hybrid
  • Midsize Performance Master: 2021 Hyundai Sonata N-Line
  • Performance Hatchback: The All-New 2021 Mazda Mazda3 Turbo!
  • NACTOY Finalists For 2021 Offer Familiar and Futuristic Choices
  • Super Trooper: Nissan Titan Pickup
  • Behind the Wheel of the Popular 2021 Toyota Corolla Sedan
  • Lucid Motors Completes Arizona Factory
  • A Robust Turbodiesel Comes to the Chevrolet Silverado 1500
  • Mid-Engine Masterpiece: The Eighth-Generation Chevrolet Corvette Stingray
  • Compact Performance:
    2021 Cadillac CT4-V
  • All-Wheel Drive Supplies the Nissan Altima With a Competitive Edge
  • Return of the Toyota Venza!
  • Lexus Brings a Convertible to the Gorgeous LC 500 Line
  • Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger
  • Preview: 2021 Nissan Rogue Crossover
  • How to Fix a Broken Rivian Vehicle
  • Cadillac Gets Most Things Right
    With the XT6 Crossover
  • The High Potency Dodge Challenger SRT Hellcat Redeye Widebody Coupe
  • The All-New Chevrolet Trailblazer Forges Urban Paths
  • The Small Infiniti QX50 is Big on Tech and Engineering Features
  • Toyota Brings the TRD Treatment to the Midsize Camry Sedan
  • The Kia K5 Outclasses Most Competitors, Including the Departing Optima
  • Can the Toyota RAV4 TRD Off-Road Handle Tough Terrain?
  • Subaru WRX Showcases Its Performance Chops
  • Infiniti Overhauls QX80 Trims and Makes This Important Safety Feature Standard
  • Ford F-250 Super Duty and a Trail-Stomping Tremor Package
  • A Cut Above: Mazda’s Mazda3
  • The Highly Efficient Hyundai Ioniq
  • Volkswagen Atlas Revels in its Strengths
  • General Motors Deepens Partnership With Honda, Takes Stake in Nikola
  • Smart Concept: Jeep Grand Wagoneer
  • More Than an Encore: Buick Encore GX
  • Got a Recall? There’s an App for That.
  • Refreshed Nissan Titan Makes Its Case
  • BMW M235i: Not Your Typical Coupe
  • Hot Stuff: Lexus RC F Sport Coupe
  • Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?
  • Rumors? We Got Them!
  • About Bollinger Motors, EV Startup
  • Raptor Fighter: Ram 1500 TRX!
  • White Space Wonder: 2020 Nissan Rogue Sport
March 2013
S M T W T F S
 12
3456789
10111213141516
17181920212223
24252627282930
31  
« Feb   Apr »

Copyright © 2021 · News Pro on Genesis Framework · WordPress · Log in