Auto insurance coverage explained

Search news

Auto insurance coverage explained

November 5, 2010 - Buying auto insurance can be a confusing process for car owners with many insurance companies on the market that have a variety of policies to choose from. It may be important for applicants to understand the process before purchasing a policy.

According to the National Association of Insurance Commissioners (NAIC), there are two factors that determine how much an individual pays for car insurance: underwriting and rating.

Insurance companies underwrite policies to determine the risk related to the potential policy holder. At the end of the underwriting process, a rating is determined that indicates the price the insurer thinks it will cost to insure that person's potential claim.

NAIC states that the most important consideration in the rating process is claim frequency, which measures how many times a claim occurs within a group. A person possessing tendencies similar to high claim groups will have to pay more.

Some of the factors that impact rates are: a person's driving record; geographic location, urban areas are considered riskier than rural ones; age, certain age groups have more claims; and make and model of the vehicle.

The Maine Bureau of Insurance advises that when people are comparing insurance providers and getting insurance quotes, it is important that they give the same information to each company to be able to accurately compare their coverage.

Recent Articles

Actor Hayden Christensen selling Studio City pad

Star Wars fans may be surprised to hear Anakin Skywalker, also known as actor Hayden Christensen, may be calling for a moving company and selling his house in Studio City.

Friday, October 05 2012 15:15

Former pro baseball player Reggie Sanders selling SC beach house

Reggie Sanders list of properties is almost as extensive as his list of teams, however, he appears to be unloading homes across the country.

Thursday, October 04 2012 13:25

Hollywood couple John Krasinski and Emily Blunt buy in LA

Celebrity news sites report actor John Krasinski and actress Emily Blunt may be comparing prices of moving companies around Los Angeles, as they have purchased a home in the affluent city of Ojai.

Wednesday, October 03 2012 13:25

Tips for prepping to move cross-country

When relocating across the country, those moving may need to take some extra steps for a more successful relocation.

Wednesday, October 03 2012 13:24

Singer Sheryl Crow moving out of Hollywood Hills home

The Grammy-winning singer Sheryl Crow has been buying and selling homes throughout the country, as she currently owns a waterfront home in Florida and recently purchased a large ranch-style home in Nashville, Tennessee, just last year.

Wednesday, October 03 2012 13:22

1 Week Before Your Move

Apartment Decorating Tips: Cheap Ways to Spruce Up Your Pad

10 Questions to Ask Before Hiring a Cleaning Service

Auto Insurance: What You Need to Know

After the Offer: What You Should Ask Yourself

Relocation.com
In the Press

A Moving Company's Moving Story
June, 2012

Relocation.com's survey was recently featured on the front page of USA Today. The headline entitled "Moving in Hard Times" highlighted our results that moving and relocating behaviors were only moderately influenced by the economy.

Our lifestyle survey found that Americans are seeking smaller homes and a suburban lifestyle. These riveting results were recently featured on USAToday.com in an article entitled "American dream shrinks as smaller homes gain favor."

"This user-friendly site includes a blog and a subscription-only newsletter, too"

"Relocation.com provides you with all the tools you need to get quotes quickly from movers in your area."

The more you know, the better your move will go. Check out helpful articles by our pros.