How Premiums are Determined

If you have ever wondered how insurance companies decide what to charge each client, you are far from alone. The premiums each client must pay can seem confusing and nearly random. In fact, Chicago companies use complex statistical analyses to determine how much of a risk each driver is, then charge you accordingly. It may not seem fair, but even minor details like the kind of car you drive can affect your premiums based on nothing but statistics.

If you are unhappy with your current insurance rates, there may be better options out there. Insure on the Spot can take on the tedious process of researching insurance policies for you, then contact you with the best bargains available. To discuss how we can help you save on Chicago auto insurance, call us at 888-972-7283.

Factors that Affect your Premiums

Insurance companies consider many different variables when deciding how “risky” you are, and therefore how much you should have to pay. Just a few of these variables are:

• Your driving record. If you have received a traffic ticket within the last five years, you may be facing higher prices for Chicago car insurance. Any car accident, even one that was not your fault, will also count against you. If you have no driving record because you have only recently obtained a license, this may also increase the cost of your insurance.
• Your location. Car accidents are statistically more likely in metropolitan areas, so insurance tends to cost more for city dwellers. Even living in the suburb of a city, or a rural area within the greater metropolitan area, can affect your premiums.
• Your gender. Men tend to be riskier drivers and get in more accidents than women, so some companies charge them higher premiums. Men can sometimes avoid this extra cost if they have strong evidence of a good driving record.

If factors such as living in the city or past traffic tickets are affecting the cost of your insurance, we can help you find a better Chicago car insurance policy.

Contact Us

At Insure on the Spot, we take the stress out of finding affordable Chicago car or motorcycle insurance. Contact us at 888-972-7283.