Have you ever wondered why you get charged the amount you pay for car insurance?

Insurers have a way to figure out how much they would possibly spend on insuring you by calculating a level of risk and assigning it to each driver. Drivers with a high level of risk, or a high chance of filing a claim, are charged more for a policy than a driver who is assigned a low level of risk.

How is a level of risk determined? What would be the  impact of an accident on your rates and quotes?

All of the answers that are given in our interview  or to your agent are taken together and that is what forms the level of risk.

1. A high level of risk is assigned to someone who has a driving record with tickets and accidents. The more of either of those activities, the higher the risk level.

2. Drivers who put a certain high number of miles on their vehicle every year or who live in a high crime area are charged more for their insurance.

3. Expensive vehicles cost more to insure.

4. A driver with few years of driving experience will pay a little more than someone 25 or so.

How do these things (plus others) prove a driver is going to file a claim? Auto insurance companies have statistics that show the background information, such as that listed above, of drivers who file claims most often. With these indicators the insurer can fairly accurately predict who they will need to pay out a claim for and then charges them more to even out the balance.

At the Steve Bedgood Agency in Muskegon, Michigan we can find your level of risk and we can get a policy to fit your needs.

Please give me a call at (231) 744-9099 or start with a visit to my web site at www.muskegoninsuranceagent.com.