As expected auto insurance policies are all about risk. If you are a higher risk individual then you would expect to pay more premium compared to a low risk individual. Each insurance provider has their own algorithms which they use to calculate your risk levels and each will output a number which is similar but still different from other companies thus explaining the different quote amounts between rival companies.

The first of the factors that determine the risk profile of the auto insurance applicant is the amount of years that he/she has been on the road and also their age. This is particularly true for drivers under the age of 25 with limited driving history, they will be hit very heavily by insurance rates until they pass 25. Another important factor would be where the car spends most of its time and how safe the area is. The insurance company will look at the security of your residence and also your office to determine the likelihood of damage or accident.

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