Personal auto insurance is class rated. Most state laws currently permit insurance companies to use in rating factors that are valid predictors of risk. Traditional rating factors including the drivers gender and age, marital status, principal operator, use of the vehicle (business, farm, pleasure), and mileage (the number of estimated miles of vehicle travel for the policy being covered).
Factors such as age, gender, and marital status have been challenged, in some states now banned rating based on one or more of these factors. Territorial rating(the vehicles main location) has been attacked on the basis that it discriminates against low income drivers who happen to live in inner city areas.
Individual driving records—years of driving experience, traffic violation record, at fall accidents, and number of annual miles driven are clearly relevant rating factors. Other relevant rating factors include the age, type, and value the vehicle. Discounts may be available when more than one vehicle is insured in the same policy. Discounts may also be available for vehicles equipped with antitheft devices and passive restraints, or for youthful drivers attending school away from home without a car.
Insurers have become increasingly innovative in their use of rating factors that are intended to match premiums and exposures. Some insurers have these factors such as education level and occupation, but the appropriateness of these rating factors have also been challenged on the basis that they have nothing to do with the persons ability to drive.
Actuaries have demonstrated correlation between the person's credit score, which indicates how well he handled his financials affairs, and insurance claims. An insurance score is a numerical ranking base are persons credit history. Many insurers now considering applicants insurance score, along with other underwriting information. Even though it might be actually sound, the use of insurance scores have been controversial, in part because it's difficult to establish a logical relationship between money handling records and driving records.
Some states allow credit scores to enter into the acceptance or rejection of a risk, but the score cannot be the sole factor examined. Other states prohibit the use of credit scores in application process.
There is a lot more information on Driver rating and insurance we would be more than happy to discuss with you. We offer a range of personal auto products in Beckley West Virginia and surrounding areas. Safeco insurance is one of the many carriers that we offer. Don't shop for cheap car insurance, look for value in what you're buying, it is however one of your greatest assets. We are located at 2955 Robert C Byrd Drive Beckley West Virginia. You can call us at 304-252-6568.