Rating Factors With Ventura Insurance
Carrying auto insurance is required by law in every state throughout the nation
. If you reside in Ventura, California and you elect not to carry auto insurance you could face harsh penalties including: license suspension, vehicle registration suspension, fines, and jail time. While you may be carrying Ventura insurance as required by law, you may be wondering why your premiums are significantly higher than your friends or family member's insurance policy. Understanding how your auto insurance policy is rated will give you a deeper understanding of why you are paying the premiums you are paying on a monthly basis. While insurance underwriters do consider your driving record, there are a number of different rating factors that are considered that the average policyholder is not aware of.
Vehicle Symbol Rating
While many drivers assume their Ventura insurance premiums are determined by the value and age of their vehicle, this is entirely incorrect. A vehicle is given a symbol based on the vehicles standard VIN number. This symbol categorizes the vehicle based on studies and statistics.
The statistics used to determine a private passenger symbol is how often the vehicle is involved in accidents, how much damage the vehicle causes to third parties in an at fault accident and how much the vehicle costs to repair. After calculating all of these factors the vehicle is assigned a rating. Surprisingly a newer luxury model can actually cost less to insure than an older standard model depending on the vehicles symbol.
Vehicle Usage
Another important factor used in rating Ventura insurance is the usage of the vehicle. Usage is defined as three different types: commute, business or pleasure use. Each of these usage types are broken into mileage rating bands under 5000 or 12000 depending on the amount of miles the policyholder averages on an annual basis. Understandably, drivers putting less than 5000 miles on their vehicles will receive lower rates than those driving the national average of 12000.
What most do not know is that drivers using their vehicles strictly for pleasure will pay less than those using their vehicles for business or commute. This is primarily because studies have shown that drivers using their vehicles in the course of business or on their way to work are highly more likely to get into an accident. This is partially because of heightened traffic and partially because of increased stress levels on the road.
While these are just a few of the examples of how underwriters rate your premiums, understanding these rating factors will give you the power when quoting your insurance. Always provide accurate information and choose a company offering the best premiums for your rating categories. Educate yourself on rating guidelines and available coverages and choose wisely for your auto insurance.
by: Barbara Jackson
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