Call Us (239) 403-8391 ☰ ˟
Logo
Call Us (239) 403-8391
  • Home
  • Get a quote
    • AnnuitiesImage of right arrow
      • Annuity Quote Form
    • Auto InsuranceImage of right arrow
      • Auto Insurance Quote
    • Flood InsuranceImage of right arrow
      • Flood Quote Form
    • Health InsuranceImage of right arrow
      • Health Insurance Quote
    • Homeowners InsuranceImage of right arrow
      • Homeowners Insurance Quote
    • Life InsuranceImage of right arrow
      • Life Insurance Quote
    • MedicareImage of right arrow
      • Medicare Insurance Quote
    • Tax ServicesImage of right arrow
      • Tax Service Quote
  • Products
    • Automobile
    • Flood
    • Homeowners
    • Life & Health Insurance
    • Medicare
    • TaxImage of right arrow
      • Tax Liability Insurance in Naples, FL
  • Blog
  • Recources
    • Refer a Friend
    • Join Our Newsletter
    • Important Links
    • Insurance Glossary
    • Privacy Policy
  • Contact Us
Auto Icon

AUTO & COMMERCIAL

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home Icon

HOME & CONDO

We browse through a wide variety of coverages and find the right one for you.

Learn More
Life and Health Icon

Life & Health

We browse through a wide variety of coverages and find the right one for you.

Learn More
Medicare Icon

Medicare

We browse through a wide variety of coverages and find the right one for you.

Learn More
Taxes Icon

TAXES

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home > Blog > What Are Auto Insurance Risk Indicators?
FRIDAY, FEBRUARY 10, 2023

What Are Auto Insurance Risk Indicators?

You need auto insurance. You turn to a car insurance provider for a quote. The insurer pulls a credit report to determine if they should offer a policy to you. How will this change what you pay for your coverage? 

The insurer is looking at risk indicators. Each insurer sets indicators of risk based on factors like your credit report. This information determines if they give you a policy. It can also impact how much you pay. Most people do not think about risk when obtaining a policy like this. However, it could impact the exact benefits offered by your coverage. woman driving car

What Is a Risk Indicator? 
Insurance companies need to determine if a person is likely to file claims or be in accidents. Each auto insurance company establishes a risk indicator to do this. This is a type of code. It allows the company to determine how risky a policyholder is to them. If they are more risky, the insurer may charge more to cover these losses. 

The risk indicator can apply to a variety of factors. In some cases, it will relate to previous claims you made. It might also include motor vehicle records. It may include any type of loss reports other insurers provide. It can also apply to information about the other forms of insurance you have and the claims you filed on them. 

Why Do Risk Indicators Matter? 
Companies build these codes based on data from thousands or even millions of data points. In short, they use information about you and drivers like you to determine what the future holds. Indicators can predict how likely a driver is to engage in these behaviors again in the future. As a result, the auto insurance company can place a higher rate on your policy or require you to pay in advance. 

What Factors Are Not Part of a Risk Indicator? 
Risk indicators cannot be discriminatory. They never include information such as ethnic groups, marital status, disability, gender, or nationality. 

What Will These Indicators Look for Then? 
Factors such as the length of time you have credit can be a concern. If you do not have an established history, this can state you have unproven financial skills. If you have late payments or collections, this indicates a high risk. There's a chance your policy might lapse. That's a risk to both you and the insurer. 

Most people never learn about risk indicators. Auto insurance companies do not necessarily provide this information. Yet, they play a role in your car insurance access and costs. 

Posted 2:30 PM

Tags: auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • auto insurance(5)
  • home insurance(4)
  • health insurance(3)
  • life insurance(2)
  • flood insurance(2)
  • flood(1)
  • florida condo insurance(1)
  • hurricane insurance(1)
  • florida home insurance(1)
  • business insurance(1)
  • medicare(1)
  • condo insurance(1)
  • florida insurance(1)

View Mobile Version

Contact Us Today!
(239) 403-8391

Social Social Social Social

Resources

  • Products
  • Customer Service
  • Payment Options
  • Report a Claim
  • News
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

Contact Us

2800 Davis Blvd. Ste #208
Naples, FL 34104

P: (239) 403-8391 | F: (800) 507-6594 | info@cjnoelinsurance.com
© Copyright. All rights reserved. | Powered by Insurance Website Builder