It’s a common fact that pricier vehicles will always be more costly to insure than cheaper models. This is because insurance companies will always consider the risk that a particular vehicle will be stolen, vandalized, or perhaps involved in an accident. Repair costs are also taken into consideration, along with acquiring more exotic automobile parts. Insurance companies also obtain vehicle information by consulting various claim statistics available to them, such as The Highway Loss Data Institute, which indexes the payouts made by insurance companies for collision, injury, and theft claims covering a huge variety of motor vehicles available on the market. Having said that, vehicles which are considered “burglar bait” across the country will probably cost an arm and a leg to insure compared to more common models.
In addition to these statistics, insurance companies consider their own experience with regards to claim payouts. If one company has paid numerous claims on a particular vehicle, it may charge higher insurance premiums for that type of vehicle than a rival insurance company. This is why you should consider obtaining quotes from different insurance companies before deciding on which service works best for your car, otherwise you do not maximize the use of your insurance in accordance to your needs.
When do insurance companies check driving records?
Every insurance provider has its own method of evaluating potential premium holders. If a review of your driving record reveals negative information, the chances of your insurance payments going up may definitely be affected. This is because insurance companies employ their own point system to determine the incremental amount such that the points on your driving history may or may not have a direct impact on the premiums you pay for auto insurance. Only “moving violations” or those infractions involving moving traffic will affect your insurance rates. Parking tickets and other non-moving violations are typically ignored insurance companies.
Quick fact: the Department of Motor Vehicles in each state has its own point system, which it uses used to track accidents and violations that may adversely affect your driving record. Once you have purchased a policy from them, Insurance companies will typically request an index of your driving history from the state DMV and cross-reference it with prior information which you have provided upon enrollment. This procedure of checking your DMV record is repeated when your policy is scheduled for renewal.