OnlineAutoInsurance.com Discusses the Basics of Territorial Rating
Los Angeles, CA, July 14, 2011 --(PR.com)-- A new FAQ published on OnlineAutoInsurance.com explains an important but sometimes misunderstood factor in determining how much consumers pay for car insurance: Their ZIP code.
In setting the price of a policy, insurers look at a broad range of data that can indicate risk levels, including whether motorists live in areas with lots of congestion, high accident rates and long commutes. Coverage providers look at those and other indicators of risk for a given geographical area and adjust premiums based on those perceived risks.
So if you compare auto insurance rates for a vehicle garaged in an area where theft rates are low with another where theft rates are high, chances are that the cost of the comprehensive portion of a policy—which covers such incidents—in the theft-prone area will be higher.
The process of calculating prices based on where a vehicle is garaged is known as territorial rating, and it plays a major role in determining coverage costs.
Studies have found that the location of a garage is the most accurate predictor of loss, far outweighing the importance of an individual’s driving record.
Source: http://www.cga.ct.gov/2006/rpt/2006-R-0542.htm
To demonstrate the impact of territorial rating on policy rates, OnlineAutoInsurance.com earlier this year compared prices for a single driver profile in 27 ZIP codes in the Sacramento, Calif., area.
The results showed that someone living in one ZIP code could end up paying as much as 16.6 percent more on average than the same person—a 30-year-old, married man with a clean driving record—would pay in another part of the city.
To learn more about this and other coverage issues, readers can go to http://www.onlineautoinsurance.com/compare/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers find the best rates for a policy quickly.
To access the full FAQ, visitors can follow the “Questions” link located at the top of any page on the site.
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In setting the price of a policy, insurers look at a broad range of data that can indicate risk levels, including whether motorists live in areas with lots of congestion, high accident rates and long commutes. Coverage providers look at those and other indicators of risk for a given geographical area and adjust premiums based on those perceived risks.
So if you compare auto insurance rates for a vehicle garaged in an area where theft rates are low with another where theft rates are high, chances are that the cost of the comprehensive portion of a policy—which covers such incidents—in the theft-prone area will be higher.
The process of calculating prices based on where a vehicle is garaged is known as territorial rating, and it plays a major role in determining coverage costs.
Studies have found that the location of a garage is the most accurate predictor of loss, far outweighing the importance of an individual’s driving record.
Source: http://www.cga.ct.gov/2006/rpt/2006-R-0542.htm
To demonstrate the impact of territorial rating on policy rates, OnlineAutoInsurance.com earlier this year compared prices for a single driver profile in 27 ZIP codes in the Sacramento, Calif., area.
The results showed that someone living in one ZIP code could end up paying as much as 16.6 percent more on average than the same person—a 30-year-old, married man with a clean driving record—would pay in another part of the city.
To learn more about this and other coverage issues, readers can go to http://www.onlineautoinsurance.com/compare/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers find the best rates for a policy quickly.
To access the full FAQ, visitors can follow the “Questions” link located at the top of any page on the site.
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Contact
Online Auto Insurance
Gregor McGavin
909-784-2476
http://www.onlineautoinsurance.com/
Gregor McGavin
909-784-2476
http://www.onlineautoinsurance.com/
Contact
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