Automobile Insurance Policies in Waukesha Wisconsin are something of a mystery to many drivers. Everyone knows they have to pay the bill each month, but many are unaware of how their rates are determined. Below are several things most policyholders don’t know about the auto insurance industry.
Women Pay Less
According to industry data, women pay about 12% less than men do for equivalent coverage. Over the course of one’s driving life, a man may pay up to $15,000 more for auto insurance. The reasoning is simple: men tend to drive more aggressively and have higher claims rates.
Educational Levels Matter
While it’s not necessary to be a doctor or graduate from Harvard, those with higher educational levels pay less for auto coverage. Some believe it’s discriminatory to charge the lesser-educated a higher rate, but the practice has stood up to court challenges.
Credit Scores are Important
Like it or not, a person’s credit score is often the most important factor in determining auto insurance rates. A spotty credit history raises serious red flags for auto insurance companies that fear a driver may not be able to pay his or her bills in the future.
Carriers Don’t Make Money on Premium Payments
Like other financial institutions, auto insurers seek to create more capital from that which already exists. Simply put, they invest premiums in hopes of making a profit. However, it can be challenging to attract new customers who are often price-conscious. Therefore, carriers price policies competitively while protecting their interests.
Location Matters
While the above-listed criteria are all important, these amounts are insignificant compared to what someone can save based on his or her location. Speak to a local agent about saving on Automobile Insurance Policies in Waukesha Wisconsin.
The Very Young and Very Old are Expensive to Insure
Young drivers pay the most for auto insurance, and premiums decline steadily from ages 18-25. They stay relatively constant until a driver reaches age 55 when they start climbing slowly until making a big jump around age 75.
The information given here should give local drivers some background on how companies like P & C Insurance Services Inc. arrive at the quotes they provide to customers. Browse the website to learn more or call the office today for a no-obligation quote.
