Car insurance quotes are based on a car’s value and the risk that the driver is going to get into an accident. A car’s value is pretty easily set because the Blue Book covers almost all permutations of auto configurations. However, the risk that a driver can get into an accident is a little more tricky. Some factors are quantified such as the age of the driver, whether the driver is male or female, even what kind of credit risk he or she is. All things being equal, these kinds of considerations will likely determine car insurance quotes. What could really up the ante, however, will be the driver’s insurance history. Specifically, this refers to his or her history of filing car insurance claims.
Tickets or accidents that get reported are taken into consideration when car insurance quotes are set. If an applicant has paid out of pocket to avoid any record of claims, then there’s no way for the company to know about it, and it will not be a cause for a rise in premiums. Sometimes, if the accident was very minor and the applicant was not at fault, there won’t be an increase charged. Tickets will always cause insurance rates to rise or policies even to be canceled. Usually, increases are not imposed until the following year’s renewal or when the person changes insurance companies. Changing companies will not help the applicant get a lower rate if it appears on his or her Comprehensive Loss Underwriting Exchange (C.L.U.E.) report. The C.L.U.E. is a database of claim histories accessible to insurance companies that want to check an applicant’s claims information during the process of quoting and underwriting. Thus, any accidents that appear on this service will certainly cause an applicant’s car insurance quotes to rise.
If an applicant has ever had insurance canceled, then it will be difficult to get car insurance quotes that aren’t higher than what he or she had previously paid. A substantial gap in coverage will also lead to a higher replacement quote, as the insurance companies will consider the applicant to be a brand new driver with no history, with the accompanying increase in their underwriting risk. An applicant’s having been turned down for insurance will lead to higher car insurance quotes when he or she finally gets a company to take him as a client.
If drivers make an effort to keep any small accidents off their DMV report, cover small claims themselves, keep coverage continuous, and never give their company a reason to cancel, then they are likely to see some of the lowest car insurance quotes available. Clearly, insurance history can be a major factor in determining premium rates.