By insuring a driver, companies take a risk. If the driver is involved in a covered event and files a claim, the insurance company will have to financially compensate him. Statistics help companies detect cars and drivers more likely to cause the company losses. Insurance companies carefully analyze a series of factors considered extremely relevant for a person’s risk profile.
- Driving history. Insurance companies are interested in two things: years of experience behind the wheel and recent traffic violations. Company questionnaires will ask about the driver’s license or permit and its status (valid/active or suspended). Furthermore, clients will be asked when they’ve got their license (at what age or exact year). Next, the client will be asked to answer if he or she committed any traffic violation in the past 3-5 years or were involved in an accident.
- The quoted vehicle. Insurance companies ask about the car make and model, plus body-type, in order to get statistical data about price, numbers of accidents with that model involved and car theft frequency. The price difference between a Sedan and an SUV is significant. The Actual Cash Value is also calculated based on the age of the model.
- Auto Insurance history. Car insurance companies ask about car coverage history, especially if the client has or had coverage with them, in order to check how long the client tends to stay with the same company. Furthermore, the client will be asked about the last maximum liability coverage (if the client was previously insured).
- Marital status. On average, married people get better rates when compared with single people with similar ages, backgrounds, and vehicles. Married people seem more responsible. Being divorced or separated has the opposite effect.
- Education level. Education plays an important role in getting better rates and persons with at least a college degree are also seen as more responsible and able to focus on the driving task ahead. Also, students can apply for various programs and access dedicated discounts.
McKnight Insurance Services is a independent insurance company, with offices in Mansfield, Texas and Midlothian Texas. Being independent means we don’t work for a single or exclusive insurance company. We work for you!
McKnight Insurance represents a carefully selected group of financially strong and reputable insurance companies; therefore we are able to offer you the right coverage at the most competitive price.
Give us a call at 817-277-6166