When applying for auto insurance, companies assess your risk and the likelihood you will file a claim. This is called underwriting a risk. If the risk level has been ascertained, the insurer will make grouping to you with policyholders who have same risk characteristics. Then, the insuring company will assign a rate based on the claims history for your risk group. The most common factors that impact car insurance rates are driving record, Gender and age, marital status, Prior insurance coverage, Annual mileage, Make and model of car etc. Some, but not all, insurance companies use individuals credit history (good or bad) too as a factor in ascertaining your premium. In order to help keep car insurance rates down, it is important for us to ask what discounts the company offers (i.e. security devices, safety devices, good-driving record, defensive-driving courses etc.).
When an insurance company considers you a high-risk driver, it will be difficult to obtain insurance, especially at better car insurance rates. Usually drivers are considered a high risk because of tickets or accidents, irresponsible or drunk driving history or being an inexperienced operator. A main element in determining your rates is your driving record. Keep in mind that insurance points will remain on your record for three years.